The exact length of the loans outlined in the bailout package yesterday are not known – but a figure of around 7 years was mentioned.
The average interest rate mentioned is 5.8% –
We have done some number crunching – to see what the monthly repayments would be on a repayment mortgage of 67.5 billion euro over 7 years.
The monthly repayments would work out at around €980 Million a month – or €11.7 Billion a year.
To put that in perspective – as at October 2010 Ireland had a total income from taxation of about €27.4 Billion – but had spent €37.2 billion .
So – Ireland has spent about €10 billion more than it brought in so far in 2010
If the “man on the street” wanted to borrow double their annual income when they were already spending more than they earned – would any lender even consider them?