All The Latest On The Irish Bailout - Up To €17.5 Billion Of Rescue To Be Funded By Irish Pension Fund Contribution Redirection
Follow along as we track the news avalanche:
- Official release from ECOFIN as paraphrased by the CEU: Euroarea financial support will be provided to Ireland.Three pillars: 1) an immediate strengthening of the banking system, 2) an ambitious fiscal adjustment to restore to fiscal sustainability, 3) growth enhancing reforms in the labor market, to allow return to sustainable growth.
- Financial package will cover needs up to €85 billion: €10 billion for immediate recap measures, €25 billion on a contingency basis for banking system support, and €50 billion for budget needs. €17.5 billion will be financed by an Irish contribution from banking system and its pension fund (the NPRF). The remainder €17.5 will ceme from EFSF, UK, Scandinavian countries, and the IMF.
- Interest rate at about 5.8%
- Precise interest rate to be in line with standard IMF pricing practices, and will be come next week
- Olli Rehn: "Senior debt of bank bondholders will not be involved"