The Eurozone Agrees to a Rescue Package for Ireland
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The Eurozone Agrees to a Rescue Package for Ireland
Ireland is in a new phase of existence
The Irish Government have made one of the most significant decisions in our history by agreeing to make a formal request for a multi billion euro loan package to the European Union and the International Monetary Fund. The decision was made following an emergency cabinet meeting yesterday evening.
The decision was made by the Government to ensure the following aspects:
To stabilise the Public Finances
To stabilise the Irish Banking Sector.
The stability of the European Single Currency.
The specific details of the arrangement have not been released and are subject to detailed discussions that shall take place over the next few weeks. The Minister for Finance Brain Lenihan stated that most of the money allocated to the financial institutions, would not be drawn down but would form an emergency reserve designed to bring confidence to the markets.
There will be restructuring of the financial institutions that will result in significantly smaller banks. Details of such restructuring are still under negotiation. Governments within the Eurozone formally welcomed the Irish request as did the European Central Bank which stated that such assistance will come with a “strict policy conditionally attached”.
The specific details regarding the rescue package have not being released as of yet but it almost certain that Ireland will have to fulfil certain conditions as part of the rescue package.
John McCarrick
John McCarrick and Associates
11 Dunville Avenue, Rathmines
Telephone:01 4960102
Fax: 01 4973717
Email: jmccarrick@jmccarrick.com
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