News / Europe

European Nations Agree on $113 Billion Bailout Plan for Ireland

Jennifer Glasse

European Nations have agreed on a plan to help debt-ridden Ireland in an effort to shore up the euro and help Ireland address its banking crisis. The deal is worth $113 billion.

The money comes in a combination of loans and transfers from Ireland's pension reserves.

Irish Prime Minister Brian Cowen says the agreement is necessary for the nation and its people. "The final agreed program represents the best available deal for Ireland. It allows us to move forward with secure funding for our essential public services, for our welfare state and for the most vulnerable members of society, who depend on them, and it provides Ireland with vital time and space to successfully and conclusively address the unprecedented problems that we've been dealing with since this global economic crisis began," he said.

The loans range between three to seven-and-a-half years, and come from a combination of the International Monetary Fund, European nations, the European commission and bi-lateral agreements with Britain, Denmark and Sweden. Jean Claude Juncker heads the euro-area finance ministers' group. "The financial package of the program will cover financing needs up to 85 billion, including 10 billion euros for immediate recapitalisation measures, 25 billion on a contingency basis for banking system supports and 50 billion covering budget financing needs," he said.

Greece received a three-year $146 billion bail-out in May to salvage its economy. Irish Finance Minister Brian Lenihan says his nation got a similar deal. "The terms of the interest rate are exactly the same as the terms of Greece, and where that leaves the four year plan is in fact in a better funding position, just as far as state is concerned, as far as actual 50 billion that is earmarked for state borrowing is concerned, because the four-year plan assumed an interest rate of six percent, and this is actually locked in today at a somewhat lower rate," he said.

Britain's finance minister, known as the Chancellor, says it is in his country's interest to help Ireland, Britain's biggest trading partner.  Analysts say the economies of Spain and Portugal are showing signs of weakness, sparking further concerns for the stability of the euro.

You May Like

UN Watchdog Urges Israel to Probe Possible Gaza War Crimes

More than 2,100 Palestinians, most of them civilians, were killed in a 51-day war in Gaza, along with 67 Israeli soldiers and six civilians in Israel More

New Kenyan 'Thin SIMs' Poised to Transform African Mobile Money

Equity's new technology is approved in African nation for one-year trial, though industry leader Safaricom says thin SIMs could lead to data theft and fraud More

Solar's Future Looks Brighter

New technology and dropping prices are contributing to a surge in solar power More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Talks to Resume on Winter Gas for Ukrainei
X
Al Pessin
October 25, 2014 4:21 PM
Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Talks to Resume on Winter Gas for Ukraine

Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.

All About America

AppleAndroid