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EU Agrees to $113B Ireland Bailout

New rules for future emergencies also sketched out

By the Associated Press

Posted Nov 28, 2010 4:57 PM CST

(AP) – 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.

Irish Prime Minister Brian Cowen pauses as he speaks to the media at government buildings, Dublin, Ireland, Sunday, Nov. 28, 2010. (Peter Morrison)

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EU Agrees to $113B Ireland Bailout

New rules for future emergencies also sketched out

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More Newser Stories

Irish Lawmakers OK $90B Bailout—Barely

Despite cries from opposition, motion passes 81-75

Europe Markets in Turmoil Over Debt Worries

New concerns (and rumors) center on Portugal, Spain

Portugal Gov't Verges on Collapse

Country could soon go the way of Greece, Ireland

Europe Works Out $135B Irish Rescue Deal

...Even though Ireland insists it doesn't want to be rescued

Bailout of Ireland Looks Likely

EU fears a delay will bring another Greece-like crisis

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