Something shaky about the solidarity bond

THE spending culture is still alive and well. Forgive me if I am somewhat mystified by the financial mechanisms supporting the latest offering – the national solidarity bond – from the mandarins in the Department of Finance.

I understand that any monies received from purchasing these bonds will be used for infrastructural developments and that a 50% interest rate on the capital sum invested will be paid after 10 years.

Not a bad return by any means, but what I fail to understand is that if all the money is spent, how will the Government then be in a position to repay 150%.

Just in case anyone might have forgotten, by 2020 we will barely have scratched the surface of the NAMA debt. So I wonder if some of the money will be used to purchase additional euro printing presses?

John Burnett

Eversleigh

Upper Kilmoney Road

Carrigaline

Co Cork