Irish Bailout May Cost $70 Billion
The New York Times reports:
PARIS — The financial support program being discussed between Ireland and potential donors should amount to at least 50 billion euros, officials briefed on the talks said Friday.
The ultimate size would depend on whether Ireland took the money merely to shore up and restructure its crippled banks or whether a larger package was offered to take the country out of the government borrowing markets for some years, said the officials, who were not permitted to speak publicly.
Ireland acknowledged 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 the European Central Bank in Dublin. The talks are scheduled to continue next week.
If the parties agree to a package covering only Ireland’s banking industry, the total could be limited to 50 billion euros, or $68 billion, the officials said. If the package took Ireland out of the sovereign debt market — as was the case with Greece’s 110 billion euro package this year — then it would rise closer to 100 billion euros, or $136 billion.
Bill Murray, an I.M.F. spokesman in Washington, said it was too early to speculate on the outcome or timing of the talks. Typically, I.M.F. financing programs take several days — sometimes longer — to negotiate.
Speaking to the French daily newspaper Le Monde, a senior European official, Klaus Regling, said that the mission would need about two weeks to identify financing needs in the banking industry and identify reforms. Mr. Regling, head of the European Financial Stability Facility, the euro zone’s temporary safety net, said there would be no problem raising money.
Amadeu Altafaj, a spokesman for the European Commission, declined to comment on the state of the talks.
