gunter wrote:Could we not just announce a major oil find off Dalkey, whether there's anything there or not, and watch as our borrowing costs drop through the floor on a wave of positive sentiment, thus stimulating an actual recovery in the national balance sheet. We could probably then even afford to buy a few barrels of oil that we could casually leave lying around in Bullock Harbour just in case anyone came to check.
Providence brings in Baltimore partner
Monday, 26 April 2010 10:23
Exploration company Providence Exploration says it has agreed a farm-out deal to advance its Baltimore heavy oil discovery, off the coast of Ireland.
UK independent oil and gas firm Nautical Petroleum will acquire a 40% interest in the licence in return for funding a development feasibility review. Providence retains the balancing 60%.
The deal for the site in the North Celtic Sea Basin is subject to approval from the Government.
Nautical is currently involved in a number of similar heavy oil field developments in the UK North Sea including the Kraken discovery and Mariner, which is operated by Statoil.
PVC King wrote:As requested - one oil find!!!!!
KB - The general view on Sir Anthony has been he invests when others won't; he and his brother in law took some hit trying to save Waterford Wedgewood; anything but Crony capitalism or the firm would have been well naked before the downturn hit.
KerryBog2 wrote:The shareholders got nothing,
FORMER CELTIC TIGERS' BORROWING COSTS HIT BY GREEK DEFAULT FEARS - The injustice of it all! As fears of a Greek default escalate, Ireland's 10-year borrowing cost rose above 5% on Wednesday, a 2 percentage point premium over German Bunds. In its influential Lex column, the Financial Times says that Irish finance minister Brian Lenihan has led the way among ailing peripheral euro zone economies in taking the harsh fiscal measures needed to regain investor confidence. He set the example months ago that Athens should follow now, slashing public servants' salaries, and welfare payments. Investors rewarded him: the yield spread over Bunds narrowed. Now Dublin has given up those gains as Greece, the European Commission and the International Monetary Fund fail to agree on similar draconian measures for Athens. Ireland is no saint, the column says. Like other peripheral economies it became uncompetitive, paying itself too much and producing too little. And unfettered bank lending and limp regulation during its property boom brought deep recession when the bubble burst. The 12.5% contraction in Ireland's gross domestic product since the end of 2007 is the euro zone's worst. Output could shrink 1.3% this year. Furthermore, Ireland's budget deficit, at 14.3% of GDP, is higher than Greece's. But Ireland is not in the same league as Greece: the former Celtic Tiger has a credible recovery plan and has bounced back before.
NAMA GIVES FIRST CASH TO DEVELOPERS - NAMA, the toxic loans agency, has extended its first-ever funding to the country's developers as they struggle to finish projects around the country, says the Irish Independent. The agency declined to name the developers who received the capital or the amounts they received. "NAMA has provided small amounts of urgently needed working capital to support a number of projects to date,'' said a statement from the agency. A number of developers are now expected to seek permission from NAMA to roll over huge debts in the next few weeks. NAMA said yesterday it would decide on these when staff review the business plans of the developers. It is likely that major developers will now be forced to sell unprofitable or underperforming assets, following a review of their business plans. While NAMA is anxious to avoid a fire-sale of development land, trophy assets which are in the red are under scrutiny. Some of the top 10 developers have had business plans sent back because they are not judged to be realistic enough. However a number of plans are still outstanding. They disclose huge indebtedness and extensive breaches of loan covenants.
PVC King wrote:Are you not going to break down the figures between; Domestic banks, Government, Consumer, secured on PPR, foreign direct investors and non-dom funds?
The chairman of the National Asset Management Agency has warned that no borrower is too big to fail.
Speaking to the Chartered Accountants Leinster Society, Frank Daly, said many borrowers had not yet abandoned the extravagant mindset of the 2003 to 2007 era.
By now, NAMA has held face-to-face meetings with the top ten developers or their representatives. These are being asked to submit detailed business plans to the agency soon. Mr Daly said NAMA would approach these plans with a sense of realism - about property over-supply, prices and the prospective demand for developments.
AdvertisementNAMA has almost completed the transfer of the first batch of loans from the banks. The discount on these loans will be 51%.
The NAMA chairman today said there were a large number of borrowers who owed between â‚¬5m and 420m who were not professional property developers.
'It is very difficult to understand how borrowers on relatively modest incomes could have been advanced large sums of money to invest in undeveloped sites in unpromising locations,' he said. Mr Daly added that there were questions to be asked about the way banks were run in allowing this type of lending to take place.
Mr Daly also raised big questions about Ireland's planning process in the past. He asked how many shopping centres or apartment developments could a medium-sized town accommodate?
He also said one of the more baffling features of the boom was that banks seemed oblivious to other lenders who were financing similar developments in the same area.
Mr Daly also defended the cost of professional services used by NAMA, describing it as 'low' and adding that the cost of these services would be recouped from the banks.
Bank costs to swell deficit - ESRI
Wednesday, 14 July 2010 07:00
The Economic and Social Research Institute says the cost of providing extra capital to Anglo Irish Bank and Irish Nationwide will have to be included in the national accounts, and will push the government deficit from 11.5% to 19.75% of economic output - by far the highest in the developed world.
The ESRI also says money to tackle long-tern unemployment is better spent on training schemes than on building infrastructure.
In its latest quarterly survey of the Irish economy, the ESRI sees little difference to its previous outlook, with the economy broadly flat this year and modest growth next year.
But what has changed is the announcement in March of E12.9 billion of extra capital for Anglo Irish Bank and Irish Nationwide. This injection is by way of promissory note - a type of IOU under which cash can be drawn down over a ten-year period as the institutions require.
The ESRI believes the EU statistics agency Eurostat and other international bodies will want that liability written into the national accounts in full this year. That would have the effect of increasing the government deficit from the department of finance target of 11.5% to almost 20%.
The ESRI also cautions against using infrastructure spending as a job creation mechanism, saying its research suggests that money is better spent on improving workers' skills through training programmes for long-term sustainable results.