EU agree €85 billion rescue package for Ireland

The EU has tonight agreed a €85 billion rescue package for Ireland, €10 billion of which will immediately be used to secure the banks. €17.5 billion of these funds are to come from the Irish pension reserve fund.the remainder being supplied by the EU and IMF at an average interest rate of 5.83%. 

Key points include

• Ireland has been given an extra year, until 2015 to reduce the budget deficit to 3% of GDP required by the EU.
• €15bn in Budget spending cuts and tax increases.
• Restructuring of the main banks.
• Banks must draw up a list of potential assets to dispose of.
• A clampdown on public-sector pay.