EU Agrees to $113B Ireland Bailout

New rules for future emergencies also sketched out
By Newser Editors and Wire Services
Posted Nov 28, 2010 4:57 PM CST
EU Agrees to $89B Ireland Bailout
Irish Prime Minister Brian Cowen pauses as he speaks to the media at government buildings, Dublin, Ireland, Sunday, Nov. 28, 2010.    (Peter Morrison)

European Union nations agreed today to give $113 billion in bailout loans to Ireland to help it weather the cost of its massive banking crisis, and sketched out new rules for future emergencies in an effort to restore faith in the euro currency. The rescue deal, approved by finance ministers at an emergency meeting in Brussels, means two of the eurozone's 16 nations have now come to depend on foreign help and underscores Europe's struggle to contain its spreading debt crisis.

In Dublin, Irish Prime Minister Brian Cowen said his country will take $13.2 billion immediately to boost the capital reserves of its state-backed banks, whose bad loans were picked up by the Irish government but have become too much to handle. Another $33.1 billion will remain in reserve, earmarked for the banks. The rest of the loans will be used to cover Ireland's deficits for the coming four years. (Read more Ireland stories.)

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