Image by The Library of Congress via Flickr
So at last European Union (EU) has approved the bailout package for Ireland. The bail out package is divided in two parts: 1. restructuring of the Irish banking system and 2. fiscal and structural reforms.
Under the bailout package, EU has approved to pay €85 billion (bn) at the average rate of 5.83%. The fund will come from European Financial Stability Mechanism, European Financial Stability Fund and International Monetary Fund.
Out of €85 billion, €10bn will be use to recapitalise the banks to improve their tire I capital ratio of 12%, €25bn for contigency and rest €50bn to meet budgetary requirements.
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