Deal on Ireland’s euro85B bailout could come Sunday

Protesters make their point during a mass rally in Dublin, Ireland, Saturday, Nov. 27, 2010. An Irish government minister says he expects an agreement Sunday with International Monetary Fund and European banking experts on an euro85 billion ($115 billion) loan for Ireland, but rejects reports that the deal could involve interest rates of 6.7 percent. Ryan spoke Saturday as approximately 15,000 people attended a peaceful protest march in central Dublin denouncing the government's plans to slash spending and accept an EU-IMF rescue. – AP Photo

DUBLIN: An Irish government minister has said he expects an agreement within the next 24 hours on an EU-IMF bailout loan for Ireland worth approximately euro85 billion ($115 billion), but he rejected reports that the aid could come with a punitively high interest rate.

Communications Minister Eamon Ryan said Saturday that all sides in the 10-day-old financial rescue talks in Dublin want at least “an outline agreement” before markets open Monday.

Deal on Ireland’s euro85B bailout could come Sunday

Protesters make their point during a mass rally in Dublin, Ireland, Saturday, Nov. 27, 2010. An Irish government minister says he expects an agreement Sunday with International Monetary Fund and European banking experts on an euro85 billion ($115 billion) loan for Ireland, but rejects reports that the deal could involve interest rates of 6.7 percent. Ryan spoke Saturday as approximately 15,000 people attended a peaceful protest march in central Dublin denouncing the government's plans to slash spending and accept an EU-IMF rescue. – AP Photo

DUBLIN: An Irish government minister has said he expects an agreement within the next 24 hours on an EU-IMF bailout loan for Ireland worth approximately euro85 billion ($115 billion), but he rejected reports that the aid could come with a punitively high interest rate.

Communications Minister Eamon Ryan said Saturday that all sides in the 10-day-old financial rescue talks in Dublin want at least “an outline agreement” before markets open Monday.

Irish unveil harshest cuts, tax hikes in history

Ireland’s Minister for Finance, Brian Lenihan (L), listens as Prime Minister Brian Cowen speaks during a press conference to announce the National Recovery Plan, in Dublin, on November 24, 2010. Ireland kept its prized low corporation tax on Wednesday, but outlined plans to overhaul income and sales levies, as the debt-laden eurozone nation braced for a multi-billion-euro EU-IMF bailout. Irish Prime Minister Brian Cowen presented a series of tax rises and cuts to public sector pay, pensions and social welfare in a bid to slash a huge deficit and save 15 billion euros (20 billion dollars) by 2014. – AFP Photo

DUBLIN: Ireland has unveiled the harshest budget measures in its history, a four-year plan to slash deficits by euro15 billion ($20 billion) so it can receive a massive bailout from the European Union and the International Monetary Fund.

The austerity plan axes thousands of state jobs, trims welfare benefits and pensions, and imposes new taxes on property and water. In all, it seeks to cut euro10 billion ($13.3 billion) from spending and raise euro5 billion ($6.7 billion) in extra taxes from 2011 to 2014.

Ireland swallows bitter pill, asks EU for loan

Musicians play Irish traditional music in a pub in central Dublin November 21, 2010. Ireland requested an international bailout on Sunday to tackle its banking and budget crisis, the euro zone’s second bailout this year as Brussels moves to protect Europe’s wider financial stability. – Reuters Photo

DUBLIN: Debt-crippled Ireland formally applied Sunday for a massive EU-IMF loan to stem the flight of capital from its banks, joining Greece in a step unthinkable only a few years ago when Ireland was a booming Celtic Tiger and the economic envy of Europe.

European Union finance ministers quickly agreed in principle to the bailout, saying it “is warranted to safeguard financial stability in the EU and euro area.” But all sides said further weeks of negotiations loomed to define the fund’s terms, conditions and precise size.

Ireland clinging to cherished corporation tax rate

A man walks past newspaper headlines posted on a news stand on O'Connell street, Dublin, November 19, 2010. A financial aid plan to help Ireland cope with its battered banks will be unveiled next week, EU sources said on Friday, but experts warned a rescue may not be enough to prevent contagion to other euro zone members. - Photo by Reuters.

DUBLIN: A major stumbling block in talks between the EU, the IMF and Dublin is Ireland’s 12.5 per cent corporation tax rate, which has helped attract international companies and spark growth.

The rate, one of the lowest in the world and a key reason why companies such as Google and Microsoft do business in Ireland, is under severe pressure as negotiations on a bailout package continue in the Irish capital.
The European Union and the International Monetary Fund want to see it raised in return for any bailout for Ireland and its debt-ridden banks.

Europe, IMF launch ‘urgent’ Irish rescue mission

A pedestrian passes a newsstand on O'Connell Street in central Dublin. Ireland came under intense pressure to request aid over its debt crunch in what the European Council’s president called a “survival crisis” for the euro zone and the wider European Union. –Reuters Photo/Cathal McNaughton

BRUSSELS: Europe and the International Monetary Fund announced Tuesday the launch of an urgent mission to Dublin to finalise emergency support for Ireland’s devastated banking sector.

The arrival of experts from the European Commission, the European Central Bank and the IMF represents a further blow to Irish hopes it can ride out its debt crisis alone, although Dublin has yet to accept money.

It underlines fears among euro partners for the broader stability of the soon-to-be 17-nation currency area, after a bottomless banking bailout pushed Ireland’s public deficit beyond 30 per cent of output this year.