NAMA WINE LAKE Blog
One question….will the interest and capital repayments on all this not drag us down further and be impossible to cover?
on November 22, 2010 at 4:51 pm | Reply
It’s a good question – I think we have arrived at the point where we need consider if the burdens we are facing are “manageable”. Clearly at some point the costs won’t be manageable and when we get to that point, if not before, we need consider default. Once we take the bailout from the EFSF/EFSM and inject most into the banks then we explicitly make this a sovereign debt issue – yes, you could argue that the bank guarantee puts us in that position anyway, but I would still argue we can undo the bank guarantee.
But yes, the debt and interest will be crippling but whether it is still manageable is another question.