EU finance ministers endorse aid package to Ireland
2010-12-07 17:58:09
European Union (EU) finance ministers Tuesday formally endorsed the 85-billion-euro (113 billion U.S. dollars) aid package to Ireland and a recommendation setting out the conditions attached to the package.
At their regular monthly meeting, the ministers gave green light to the aid program announced by eurozone ministers on Nov. 28 after an emergency meeting.
The loans include 10 billion euros (13.3 billion dollars) to be used to recapitalize Irish banks, 25 billion euros (33.2 billion dollars) for contingency reserve and 50 billion euros (66.5 billion euros) to cover the financing needs of the Irish government's budget.
According to the package, Ireland will contribute 17.5 billion euros (23.2 billion dollars) in support of its own banking sector through the Treasury cash buffer and investments of the National Pension Reserve Fund.
The rest of the package will come from the 750-billion-euro (about 1-trillion-dollar) rescue fund set up in May by the EU and the International Monetary Fund and bilateral loans from Britian, Denmark and Sweden.
The ministers agreed that strict conditions will be attached to the aid package, which include an overhaul of Ireland's banking system, growth-enhancing reforms and the reduction of Ireland's government deficit below 3 percent of gross domestic product by 2015, extending a previous 2014 deadline.
The Irish parliament is due to vote on the 2011 budget plan put forward by the government later on Tuesday, which vows to slash 6 billion euros (7.98 billion euros) by spending cuts and tax hikes.