FRANKFURT (MNI) – Following is the text of the statement issued
Sunday by European Finance Ministers following their decision to grant
financial aid to Ireland, which is to receive a total of up to E85
billion from Eurozone and non-Eurozone EU members (including Ireland
itself, which will cease to contribute to Greek aid), European rescue
facilities as well as the International Monetary Fund:

“Ministers unanimously agreed today to grant financial assistance
in response to the Irish authorities’ request on 22 November 2010.

Ministers concur with the Commission and the ECB that providing a
loan to Ireland is warranted to safeguard financial stability in the
euro area and the EU as a whole.

Euro-area and EU financial support will be provided on the basis of
a programme which has been negotiated with the Irish authorities by the
Commission and the IMF, in liaison with the ECB. Ministers welcome the
staff-level agreement on a three year joint EU/IMF financial assistance
programme for Ireland. The Irish Government approved the programme on 28
November.

Ministers unanimously endorse the measures announced today.
Building on the strong fundamentals of the Irish economy, the programme
rests on three pillars:

– An immediate strengthening and comprehensive overhaul of the
banking system

– An ambitious fiscal adjustment to restore fiscal sustainability,
including through the correction of the excessive deficit by 2015

– Growth enhancing reforms, in particular on the labour market, to
allow a return to a robust and sustainable growth, safeguarding the
economic and social position of its citizens.

The financial package of the programme will cover financing needs
up to E85 billion, including E10 billion for immediate recapitalisation
measures, E25 billion on a contingency basis for banking system supports
and E50 billion covering budget financing needs.

Half of the banking support measures (E17.5 billion) will be
financed by an Irish contribution through the Treasury cash buffer and
investments of the National Pension Reserve Fund.

The remainder of the overall package should be shared equally
amongst: (i) the European Financial Stabilisation Mechanism (EFSM), (ii)
the European Financial Stability Facility (EFSF) together with bilateral
loans from the UK, Denmark and Sweden, and (iii) the IMF (E22.5 billion
each).

The main elements of policy conditionality, as endorsed today, will
be enshrined in Eurogroup and Council Decisions to be formally adopted
on 6 and 7 December.

The Eurogroup will rapidly examine the necessity of aligning the
maturities of the financing for Greece to that of Ireland.”

–Frankfurt bureau tel.: + 49-69-720142. Email: frankfurt@marketnews.com

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