The National pension Reserve Fund is being raided used as part of the bailout agreed by Ireland . Figures on how much of the NPRF will be used range from €9 to €12.5 Billion . A total of €17.5 billion of state funds are to be used as a condition of the bailout .
The interest figure on the “bailout” loans quoted by Brian Cowen was 5.8% . But – if 17.5 billion is coming from Ireland’s own funds – surely we won’t be paying ourselves 5.8% interest will we? The actual interest rate on all these loans must be more than 5.8%.
What is the NPRF
The National Pensions Reserve Fund was set up as recently as 2001 to try and meet some/all of the extra costs of Ireland’s social welfare and public service pensions after 2025. These costs are expected to increase dramatically due to the ageing population.
The NPRF website states that “No money can be drawn down before 2025”. !
So much for that broken rule then!
Almost €7billion euro from the NPRF was “invested” in AIB and BOI in Feb 2009 to help refinance the banks.
According to the NPRF – the fund stood at 17.9 Billion Euro in September 2010.
So – there could be less than only be €6 billion left after it is raided as part of the bailout.