The latest news on the Ireland bailout

November 22nd, 2010 - 8:29 pm ICT by Aishwarya Bhatt  

Dublin, Nov 22 (THAINDIAN NEWS) Ireland has agreed in principle to accept an IMF-EU loan to aid in the recovery of its ailing economy. The country had earlier resisted the offer but after a lengthy meeting with the EU finance ministers, the country’s finance minister, Brian Lenihan announced that the country will accept the loan.

The EU finance ministers announced that the move will help stabilize the eurozone. Countries like Spain and Portugal are closely monitoring the Ireland move because they might eventually need such a loan of their own. Details of the loan have not emerged but it is believed that the amount will be in multiples of tens of billions of euros.

Ireland was previously regarded as an envy of several other European countries. It is believed that the country’s decision to insure the losses of the country’s state-owned banks in 2008 was to be blamed for the economy’s collapse. The country’s decision result in deficit of more than 50 euros and it threatened to push the country into uncharted territories.

Terms of the loan are set to be negotiated during a meeting between Ireland and the EU officials later. However the Irish population should embrace themselves for more strict conditions on the loan just as it happened to Greece.

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