Highlights

The Central Bank of Ireland
© Noel Moore, Fotolia

Finance ministers meeting at the Ecofin Council on 7 December formally approved financial assistance to Ireland. They also fixed the conditions for granting that assistance.

The 85 billion-euro support package had already been agreed on by the ministers at their informal meeting on 28 November after a request from the Irish authorities.

The package includes:

● 35 billion euros to support Irish banks
● 50 billion euros to cover the financing needs of the Irish government's budget.

Half of the banking support measures will be funded by Ireland from its Treasury cash buffer and pension reserves. The remainder of the overall package will be shared equally amongst: (i) the European Financial Stabilisation Mechanism; (ii) the European Financial Stability Facility, together with bilateral loans from the United Kingdom, Denmark and Sweden; and (iii) the International Monetary Fund (22.5 billion euros each).

The loans are provided on the basis of a programme negotiated with the Irish authorities by the Commission and the IMF, in liaison with the European Central Bank. The programme involves an overhaul of the country's banking system, growth-enhancing reforms and the correction of the excessive deficit by 2015. It aims to restore financial-market confidence in the Irish banking sector and the state, enabling the economy to return to sustainable growth.

More information:
Press release (pdf)
Webcast of press conference 
European Financial Stability Facility