Irish Republic 85bn euro bail-out agreed

[ame=http://www.youtube.com/watch?v=PB8vIfH4Lpc]YouTube - Ireland Bailout International Agreement On 85bn Package Is Reached By Europe And The IMF[/ame]

Irish Republic 85bn euro bail-out agreed

European ministers have reached an agreement over a bail-out for the Irish Republic worth about 85bn euros ($113bn; £72bn).

The deal will see 35bn euros go towards propping up the Irish banking system with the remaining 50bn euros to help the government's day-to-day spending.

An average interest rate of 5.8% will be payable on the loans, above the 5.2% paid by Greece for its bail-out.

Irish PM Brian Cowen said it was the "best available deal for Ireland".

It provides "vital time and space to successfully and conclusively address the problems we've been dealing with since the financial crisis began", the prime minister said.

Details of the 85bn euro plan include:

• an average interest rate on rescue loans of 5.83%
  
• the 35bn euros allocated to Irish banks is divided into 10bn euros for "immediate recapitalisation measures" and 25bn euros as a contingency fund
  
• the Irish Republic itself will contribute 17.5bn euros to the overall fund
  
• the EU will contribute 45bn euros, including direct bilateral loans from the UK, Sweden and Denmark
  
• the IMF will contribute 22.5bn euros
  
• allows the Irish Republic to delay by one year to 2015 its deadline for reducing its budget deficit to 3% of GDP.

http://www.bbc.co.uk/news/world-europe-11855990