Troika ‘like a ruthless moneylender’ over €220m fees

The troika has been compared to a “ruthless” moneylender following criticism of Ireland paying out over €220m in service charges to the EU and IMF for drawing down loans under the bailout.

The amounts have built up in administration fees in recent years and are in addition to the €1.4bn forked out in interest payments alone last year on the bailout.

A Government agency overseeing the bailout access and repayments yesterday stood over the service fees paid for the financial aid from member states and the IMF.

The National Treasury Management Agency said fees had declined in recent years as the amount being drawn down reduced.

Figures show that €67.3m mounted up in fees last year under the aid programme, compared to €113.8m in 2011. In 2010, the year the bailout was agreed under the Fianna Fáil-Green Party coalition, the figure was €41.2m.

But amid expected cuts to services in October’s budget, TDs rounded on the Government.

Independent TD Mattie McGrath warned that the EU-IMF fees for the loan were unacceptable. “This is an obscene amount of money for the administration of a drawdown on loans.

“It is like kicking a man when he is at his weakest when you consider the already outrageous rate of the €1.4bn interest payments made in the last year alone on the bailout.

“I simply do not understand how such vast sums of money can be justified by the EU and IMF who are forever telling us they are ‘friends of Ireland’.”

He said voters since the Coalition was elected were effectively just getting “a spineless capitulation by this Government to what is effectively a rate of interest and administration cost that would embarrass the most grasping and unscrupulous moneylender.”

He said the troika was acting like a “ruthless moneylender” itself charging such fees.

“They’ve made a nice bit of money on the backs of Irish people.”

The Tipperary South TD questioned why the troika were encouraging Ireland to invest in job creation while at the same time charging such large fees.

“How can they speak of allowing for the creation of a sustainable and just economy when they are effectively fleecing the coffers of this country by charging such exorbitant administration fees?”