EUR 85 B Bailout Negotiated for Ireland

A file photo shows pedestrians walking past the Bank of Ireland in Dublin, Ireland. The crisis has been brought on by the recession and the almost total collapse of Ireland's banks, analysts say. Photo by EPA/BGNES.

The EUR 85 B-strong bailout speculated about until recently has now been negotiated for Ireland, as the country is getting EU and IMF money and introducing austerity measures to the effect of EUR 15 B to stabilize its finances.

The agreement "in principle" has been achieved among the Irish government, the European Commission and the IMF.

European Commission President Manuel Barroso said he strongly hoped that the plan will receive unanimous support by EU finance ministers set to meet later Sunday.

"We are ready to meet all challenges and member states take up austerity measures very bravely," said Barroso as reported by the Bulgarian National Radio.

EU finance ministers, set to meet 14.00 EET (12.00 GMT), are expected to agree on the amount and the framework, but to discuss details.

Later Sunday it became clear that all finance ministers agreed to the package, but it still has to be formally signed. A detail of contention was the size and structure of the interest.

EUR 35 B of the 85 B amount are expected to be directed at boosting Ireland's ailing bank system.

The rest will flow into the Irish budget to overturn its great deficit that is estimated to have surpassed 32%.

This is the second Eurozone bailout for 2010, after in May a EUR 110 B help was extended to Greece.

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