Ireland Confirms Formal Bail-Out Request

Undated file picture of the Irish Central Bank headquarters in Dublin. Irish Central Bank governor Patrick Honohan has said he expects the country to accept a "very substantial loan" as part of an EU-backed bail-out. Photo by EPA/BGNES

The Republic of Ireland's finance minister has recommended that his country makes a formal application for aid to shore up its finances.

The country may need "tens of billions" of euros, Brian Lenihan said on Sunday, speaking to RTE radio.

The Sunday Times speculated that the Republic's bail-out package would be worth up to EUR 120 B, but according to Lenihan the total would "not be three figures".

He added that the "bulk of the money" would be "a contingency fund which stands behind the banking system" and said that any money borrowed would be at far lower rates than the country could get on the money markets.

Earlier in the week the cash-strapped country claimed it has shied away from asking for help, but a bail-out has been widely expected.

Eurozone finance ministers will come up with a deal on a bailout package for Ireland next week, Bulgaria's finance minister surprisingly announced on Wednesday.

Officials from the International Monetary Fund and European Central Bank arrived in Ireland on Thursday to examine the country's debt crisis on a visit, which could result in a substantial loan.

Patrick Honohan, member of the European Central Bank's governing council and governor of the Central Bank of Ireland, said Thursday that a loan of "tens of billions" of euros will be made to Ireland by its European Union counterparts.

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