Europe sealed a 67.5 billion bailout of Ireland Sunday. But this plan will share the pain with banks and other private-sector lenders is a message that the munificence won't continue forever. they also become more wary of lending to portugal and Spain, then stoking fears of toppled dominoes along the euro-zone's weak perimeter. According to the decision of Sunday, a new undetermined size bailout fund will replace the 440 billion temporary facility which now being used to help ireland. European taxpayers and IMF have stepped into the breach with cash for Greece and Ireland before the the bailout fund being acted. Since debt relief is excluded in the plan before 2013, Ireland has to face several years of mounting debt and searing budget austerity. The Irish package includes 50 billion euros to prop up government finances and billions for banks which comes from EU and IMF.The latest bailout is a blend of loans, some for as long as 10 years, and at an average interest rate of around 6%. I covers the Irish government's financing requirement for more than two years to cut its deficit and solve banking troubles. The total package is 85 billion euros at most and the Prime Minister Brian Cowen said it is essential. And Ireland bank will try again to adding more capital to banks to give investors and depositors more confidence to survive its ailing banking system.
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