• Size of bailout
The fund will total €85 billion, €17.5bn of which will be contributed by Ireland itself. This will include a total of €50bn to fund the Irish budget and a further €35bn to recapitalise banks.
• Interest rate
If drawn down in total today, the combined annual average interest rate would be of the order of 5.8 per cent per annum. However, the rate will vary according to the timing of the drawdown and market conditions.
• Purpose of bailout
The assistance of Ireland's European Union partners and the International Monetary Fund has been required because of the present high yields on Irish bonds, which have curtailed the state's ability to borrow. Without this external support, the state would not be able to raise the funds required to pay for key public services and to provide a functioning banking system to support economic activity.
• Quarterly progress reports
The funding will be provided in quarterly tranches on the achievement of agreed quarterly targets. The programme has two parts - the first part deals with bank restructuring and reorganisation and the second part deals with fiscal policy and structural reform.
• Extra year to reach 3 per cent deficit target
EU ministers have agreed to give Ireland an extra year - until 2015 - to reduce its budget deficit to 3 per cent.
• Ireland to stop contributing to Greek bail-out
Ireland will discontinue its financial assistance to the loan facility to Greece.
Last Updated: 29 November 2010 1:38 AM
Source: The Scotsman
Location: Edinburgh
