One of the issues facing the Irish Government is that Government Bonds are being purchased by international institutions and they will ultimately draw capital from the Irish economy.
An alternative solution would be the introduction of a new SSIA scheme via the issue of Private Government Bonds Scheme only open to privateindividuals and managed through PPS numbers.
What is required is something sufficiently attractive to draw down 'old money' from blue-chip stock investments - much of which will be invested in FTSE or NYSE companies.
€100,000 x 200k people would go some way to resolving our borrowing requirements.
The benefit of this type of scheme is after the 5 or 10 year maturity period, the capital released would remain in the Irish economy.
Another concept could be to open a scheme for retirees, whereby a guaranteed percentage is paid out each year over say a 10 -15 year "locked in" period, at which point the original principle is returned.
All ideas welcome......
Picasso
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