Debt crisis, Ireland Finally Asks U.S. Bailout Billions of Dollars

Jakarta - Ireland who was wrapped debt crisis eventually filed a multibillion-dollar bailout. The EU also agreed to assist the country to avoid the spread of the crisis. The IMF will also be involved in this bailout.

"I can confirm that the government has proposed financial assistance to the European Union and European authorities have approved the request," said Irish Prime Minister, Brian Cowen, as quoted by AFP on Monday (11/22/2010).

Irish government's request and approved by EU finance ministers were performed in an emergency conference call on Sunday (21/11/2010) evening.

"The EU and euro area financial institutions support will be provided under a strong policy program, which will be negotiated with the government of Ireland by the European Commission and the IMF with the responsibility to the European Central Bank," said Cowen.

What is the exact value of the bailout it is not yet ascertained. However, Reuters writes, the EU and the IMF agreed to help the Irish with a loan amounting to 80-90 billion euros to help the banking sector and its budget deficit. That figure is lower than the value of Greek bailout reached 110 billion euros.

Irish Finance Minister Brian Lenihan said, it took several weeks to finalize the exact amount needed state bailouts.

"We have not counted exactly the picture," said Lenihan.

European Union Finance Minister and also the European region agreed to use the European funds which the Financial Stability Facility reached 750 billion euros. Funding was previously made after the European Union and the IMF to provide 110 billion euro bailout to Greece.

Previous Irish Government provoke public anger after announcing his plans to overcome the crisis by cutting costs and tax increases to address its budget deficit. However, Ireland's debt cost continues to swell, so the bailout was increasingly inevitable.

Cowen said the bailout that would give the budget challenges in the Irish economy by way of a firm with a base budget adjustment of an ambitious and comprehensive structural reforms in the budget plan for 4 years. In the plan, the Irish hope to shrink the budget to 15 billion through 2014.

Ireland's State Budget also aims to cut the deficit to below the European target of 3% of GDP and public spending cuts will involve up to 6 billion euros and an increase in taxes.

Ireland penyelematan plan that directly create the euro currency jumped sharply. On Monday in Tokyo trade, the euro immediately jumped past the 1.37 dollars level. The euro traded at 1.3755 dollars, compared to Friday's close in New York at the level of 1.3673 dollars.

Source...: Detik finance