FactCheck: Was the FAI's rescue package from the government a 'bailout'?

YESTERDAY, THE GOVERNMENT announced a financial rescue package for the Football Association of Ireland to save the beleaguered organisation from collapse.

Power pointed to Ireland’s economic bailout by the International Monetary Fund in 2011, when the State couldn’t pay back its debts, and the government’s recapitalisation of Irish banks in 2008 as examples of bailouts. “It’s a situation where special financial allowances are made because banks are not willing to continue to fund or lend to a borrower at ongoing interest rates, whether that’s a government, an agency, or even a corporation,” he said.

The organisation needed the money to meet short-term debts and remain solvent, and news soon emerged of talks between the government, the FAI, Uefa and Bank of Ireland to save the association.The package is made up of €20 million in funding over three years, including a doubling of annual State funding to €5.8 million and an annual interest-free loan of €2.5 million.

Despite insisting that the package was not a bailout, Ross acknowledged that the future of the organisation was made possible because of the funding.As well as providing a definition of the term ‘bailout’ earlier, both Power and Jacobsen analysed the nature of the organisation’s rescue package. “This is definitely a bailout,” he said. “To say it isn’t absolutely contradicts what happened when the Troika gave money to the government in 2011.”According to the standard dictionary definition and the opinions of two respected economists a bailout is a financial package that is given to an organisation, company or country which is in such a bad financial position that it requires an injection of capital to avoid bankruptcy.

They will be back looking for more within the year now that they know they can squander millions like confetti & the Govt will pick up the tab.

20 million is peanuts people need to get over it and move on .

an election gimic

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