EU-IMF bailout details announced

As expected, European foreign ministers have ratified details of a bailout, and as predicted, the  sum involved is €85billion.

The terms of the deal made between the Irish Government on one side and the EU and the IMF on the other have been released ahead of markets reopening tomorrow, in the hope that the bailout combined with a plan to repay the money will steady jitters among traders.

The chair of the Eurogroup Jean Claude Junker has revealed that €10billion will be used for the recapitalisation of the banks, with a further €25billion to be used as a banking contigency fund. €50bn for budgetary financing needs.

€12.5billion of the money will come from the reserves of the National Pension Fund. In total, €17.5billion will come from Ireland's own resources.

The interest rate on the loan will average out at 5.8 percent with an average lifespan of loans to be 7.5 years.

The figure of 5.8 per cent would be the amount paid if the total amount of the loan were drawn down today. The actual rate will vary according to the timing of the drawdown and market conditions.

It was also announced that we now have until 2015 (an extra year to what had previously been agreed) to bring our debt/GDP ratio down to 3 per cent.

Taoiseach Brian Cowen said it was the "best available deal for Ireland".

He said that it provides "vital time and space to successfully and conclusively address the problems we've been dealing with since the financial crisis began".

Reacting to the news on RTÉ's Six One News, Labour Party financial spokesperson Joan Burton said Ireland was 'banjaxed'.