Ireland Got €85 billion Bailout Package

[Irish spinner and spinning wheel. County Galw...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.

However, Ireland has to reduce it budgetary deficit to 3% by the end of 2015.

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