IMF bailout & 4 year budget plan: What does it mean for homeowners?

IMF bailout & 4 year budget plan: What does it mean for homeowners?

IMF bailout & 4 year budget plan: What does this mean for homeowners?While the country has officially been bailed out by the IMF and the EU, the final size of the rescue package has yet to be negotiated; although the sum is thought to be between €80 and €90 billion. Along with seeking nearly a €100billion bail out our own Government has announced €10billion in cuts and €5billion in new taxes between now and 2014. These include;

  • A Property Tax; could be introduced as early as next year in the form of a local service charge that could gradually be increased each year until 2014
  • Water charges; although there will be no water charges in this Decembers budget a charge is expected to be applied within two years
  • €1 cut to the minimum wage of €8.65 per hour
  • 5% cut to child benefit and all other social welfare payments
  • Levy on public sector pensioners to bring in up to €200m
  • 20,000 more public sector job losses… to name but a few

On a positive note for those with mortgage debt the IMF has accepted the need to protect vulnerable homeowners from repossession but insisted any relief measures would be narrowly targeted.


Have Your Say

  • Will the IMF give extra protection to homeowners?
  • Although there maybe a few years of pain, will the IMF bailout provide a relatively quick return to economic growth?
  • Will the 4 year budget plan and EU assistance provide the steps necessary to help, rather than hinder our ability to climb out of the mess we are in?
There are 25 comments for this article
  1. Roy Divin at 10:58 pm

    Resist the imposition of water charges by the IMF. It is the forerunner of privatisation. You may well end up paying a French or American company for your water.

  2. Cazgee at 9:54 pm

    We have left, 2 years ago and we saw all this coming, we are both working in the UK now and have not paid our mortgage in Ireland for 2 years, no job in Direland so no money to pay a mortgage, lived there for 10 years, still have a house and in massive debt, at our age will never have the money to pay it back,, wake up Ireland and help the people that need it!!

  3. Grace at 3:59 pm

    Johnny, feel free to leave. We won’t delay you!

  4. Johnny at 3:01 pm

    can someone please tell my why i don’t just stop paying my mortgage, putting the money aside and move back to scotland??
    i’m in negative equity in a house which is in an area i don’t want to be in. i don’t know any neighbours and as much as i try to do things with the house to make it more homely, i just don’t want to be there.

    so can anyone please tell me why i don’t just stop paying the mortgage and use it to settle back at home?

  5. francis at 11:32 am

    IMF & it’s conditionalities is a recipe for repossesion of homes.

  6. Gerardine Ryan at 9:35 am

    I thought the pain was meant to be starting at the top!When I see the Ministers willing to cut their salaries by 40%,when I see the state cars being sold, when I see the top Civil servants taking a drop in salary and people who are earning over 150K per year saying’My salary is more than adequate’,Only then will I agree to accepting any cuts coming along. When is enough enough? what has happened to the morals of our leaders? How can they sleep at night knowing the damage they have caused? People being driven over the edge by their greed and incompetence. For Gods sake, Life is short, we must take care of each other…Please stop and take stock of what is important…People…

  7. joe h at 8:39 am

    i obviously meant expense not above their means. Plus all the money they have accumulated during the recession taken back off of them join Minister O cuiv in a praying session on the dole queues for the rest of their lives so they can repent for bringing the country down

  8. joe h at 8:35 am

    All government members currently serving should not get any of the multiple pensions they are getting. They should be allowed to incur any expense above their means-hotel room not a suite. Should they be going out on a foreign trip take a automatic car (Mondeo-the biggest boot)with their own pre-programmed gps of destinations to stop them using the expensive chauffeur driver limos needed. get them to go on bill bay package on their mobile to stop this ridiculous phone bills they have. Bottled water available for all their meetings- tap water should suit them fine like the rest of us. a daily capped meal allowance of maximum 25 euro on business. use all methods of cheap flight available-no upgrades or private jets.

    free security while canvassing

  9. Annabelle Grobbelaar at 8:45 pm

    I totally agree with Harry! You have to laugh at how they cut all the wages, social et. Theres nothing being pumped back into the country coz we cant afford anything. They’ll just be in debt again and again. Brian Cowen is such a liar and so corrupt.

  10. Chris at 8:18 pm

    I think you forgot one thing there Harry. The Toll bridges will be taking down their electronic toll tag readers and registration camera’s to put up big rusty iron gates with armed ex-spetznaz soldiers and blood thirsty rothweiler guard dogs to ensure you pay your toll on the spot because with property taxes and water rates to pay that will most likely be handed over to a private foreign national company to administer seeing as there will be very little civil servants left after the FF/Green/EU/IMF are finished with, these companies will charge whatever rate they choose and will rightly shaft us like our government has, (and you can’t bloody rely on any Irish watchdog to look out for our best interests now can we?) nobody will have any money to pay to get through the gates. Then again, who’ll even have the money by that stage to pay the privately owned ESB to charge their electric cars anyway?

    As it stands now, and especially after hearing Biffo in his seven o clock announcement to the people (funny he only actually addresses the people and shares any information when backed into a corner like a rat)I would probably rather the IMF to take complete control. As it is the IMF are just the money men now and it is still the Fianna Fail/Green party austerity plan that will be going through. It would be nice to be shafted by an unelected elite from other countries than be shafted yet again by the same elected “elite” that have run the country to absolute ruin.

    Hands up anyone who has a relative in England/Austrailia/America/Canada that they’re planning an “extended” visit to in the next few months… 🙂

  11. Frances at 7:39 pm

    I dread to think what our fore fathers would make of this mess. I was always very patriotic but now I am just ashamed and I will be leaving this country just like my children have done. It is a shame that at this stage of our lives when we should be enjoying life and looking forward to our retirement after struggling to bring up our children, that we are looking down the road to a poor, unhealthy, poverty ridden future. I thank God that our children are gone and have some semblance of a future. It kills me that we are going to be a burden on them and dampen their futures.
    I hope there is Karma because I want to see all those hypocrites get theirs.

  12. mark murphy at 7:20 pm

    i think its time for a new government tighten there belts for once make there pay 40% reduced take 50% of there expences of them and see how much they complain about it we are to afraid to stand up to the gove march trough dublin and let them know how we feel about more taxs more pay cut more job losses going back words instead of forword the biffo has to go to meny lies to meny secrets

  13. alan at 4:55 pm

    give me my stamp duty back and i may!MAY!! pay property tax

  14. wickedfairy at 4:33 pm

    no Harry, I think you got most of it there alright.

  15. Harry at 4:15 pm

    What does it mean?

    – Property Tax
    – Water charges
    – Increases in the bin tax
    – Cuts in the minimum wage, child benefit, other social welfare payments, the state pension, public sector pensions
    – Cuts in the number of public sector jobs, but only those involved in front-line services (i.e nurses, teachers, social workers)
    – A recession (bordering on a depression) that will last for at least 15 years.
    – A further colapase in the property market
    – An increase in corporation tax (but not this year, Fianna Failed will want to blame that on whoever takes over in Jan), resulting in a flight of big multi-nationals to Poland and China.
    – College Fees, masquerading as “registration fees” as college fees are tax deductible but registration fees are not.
    – Life expectancy will drop as we all put off going to the doctor because it will become too expensive.
    – Irish Passports will be replaced with a combined French/German passport, except for the ones forged by Israel.
    – All services will be sold to multi nationals who don’t give a dam about Ireland and pillage the country of what little wealth is left.
    -Galway and Mayo will be sold to BP so they can route their gas pipeline thought school and hospital grounds
    – The “new real IRA” will be founded in 2019 and will lead an armed force that storms the water treatment plants because the multi national owners cut off all water when the “water charge” is raised to €2,400 pa.
    – More and more people will live in “gated communities” to keep beggars and unemployed people away from their mercs
    – Emigration will reach levels not seen since the famine.

    Biffo and the biffoons will retire on full TDs pensions, (60K pa, actuarial value about €1.8 million) topped off by ministerial pensions and for those that haven’t resigned, their teachers pensions as well. Biffo will also have his top of the range merc and two Garda drivers, and for the first time in the history of the state, it WILL be required for security reasons. Bertie will help them all get get book deals with rupert murdock where they will do a Pontius Pilate and blame it all on the collapase of lehman brothers.

    Then, when the tribunals start in ten years time to investigate the criminal behavior that lead to this crisis they will all develop Alzheimer’s and will be unable to testify, but will recover enough to write their autobiographies.

    Did I miss anything?

  16. wickedfairy at 3:36 pm

    we will not own our water or anything else by the time they have finished with us. ESB, water, motorways, transport, everything will be sold off for half nothing. That is what this treacherous govt have done.

  17. martina oconner at 2:38 pm

    y water charge. Y not spending unnecessary expenses by the youth on drinks, drugs & time killing on the roads. Close the pubs.

  18. John at 2:34 pm

    What is the IMF’s projected Growth rate for the iRISH Economy in 2011 ???

  19. Oonagh Fitzgibbon at 2:24 pm

    Although the bailout is needed, we NEVER EVER should have been put in this position by our money hungry governement and banks,who sought to make as money as possible during the boom without thinking that the money that was made, was made on borrowed money to begin with and they never planned for the future.
    So those who had the power destroyed our country and economy from within but it is regular people of Ireland that will suffer, yet again.
    I agree with Martin, although the bailout is needed in the short term, but will we find that in the longer tern we are actually in a worse off position,because no doubt the governement will screw up again in the future.

  20. Martin Tsachev at 2:19 pm

    Water charges are the most ridiculous thing ever as if they are based on expenses most of the price the end consumer pays will not go towards the water itself. It will go towards metering, administration, collecting payments, accounting for late and non-payment.

    The water resource itself is cheap in europe, having to deal with the payments for water usage is not.

  21. Gareth at 2:03 pm

    latest news …..

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  22. Rosaleen Butler at 1:58 pm

    This sadly needed bailout will hopefully change banking and politics in this country once and for all. It is then up to the people of Ireland to pull themselves up and get back their country as quickly as possible. 1950’s Ireland – Make Do and Mend – do what you can for yourself, DIY, Grow you Own, develop community swap shops… Search the internet for money saving ideas… We will get less money, all of us, so lets find every single way of saving money…

  23. Martin Tsachev at 1:27 pm

    In general lenders care about the interest that they get back not your well being. Don’t think the IMF makes an exception. And debt is like drugs, the more you get the more you need.

  24. tom brown at 1:13 pm

    Answer: No, No, No.
    The political parties will fail to provide the leadership required to ensure success.

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