$50 Billion for Irish Bailout

Posted on Nov 19, 2010

AP / Peter Morrison

Houses stand vacant in North Dublin, Ireland. This Castlemoyne development is one of the many so-called ghost estates that have been largely abandoned and left unfinished across Ireland as a result of the country’s financial crisis.

Although it may sound like a delicious alcoholic beverage rather than a $50 billion rescue of Ireland’s capitalist apparatus, an Irish bailout by the International Monetary Fund, the European Commission and the European Central Bank is being discussed as the island country reels from debt and failed banks.

Ireland admitted previously that it had reservations about taking the international rescue funds, as stipulations regulating IMF bailouts historically leave countries without sovereign control over their economies. —JCL

The New York Times:

The financial support program being discussed between Ireland and potential donors should amount to at least €50 billion, officials with knowledge of the talks said Friday.

The ultimate size would depend on whether Dublin takes the money merely to shore up and restructure its crippled banks, or whether a larger package is offered to take Ireland out of the government borrowing markets for some years, said the officials, who were not permitted to speak publicly.

Ireland admitted Thursday that it was likely to accept international aid, despite reservations about losing control of its purse strings. The government is holding discussions with the International Monetary Fund, the European Commission and European Central Bank in Dublin. The talks are set continue next week.

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