Ireland's Finance Minister, Brian Lenihan, is to recommend the debt laden country make a formal application for a bailout loan from the European Union and the IMF. He gave no indication of how much will be needed but said it would not be a 'three-figure sum' - reports today have put figure needed as high as €120bn - but said it would be "tens of billions of euros".
A rescue from the EU, European Central Bank and International Monetary Fund has been wideley expected despite strong denials from Ireland. The recommendation will be made when the government meets later today to finalise a four-year plan to cut its budget deficit, he told RTE, the Irish broadcaster.
"The key issue is ensure we do not have a collapse of the banking sector," Mr Lenihan said in an interview. He acknowledged that Irish banks have become too dependant on ECB funds and had to be "weaned" a way from this funding. Mr Lenihan described the funding being applied for as 'a standby fund' and said not all of it would necessarily be drawn down.
Details of the bailout - or the conditions attached - will be the subject of discussion. However, the Irish government has been given a stark warning from some of the biggest American companies in Ireland on the risk of a mass exodus if the country's low corporation tax rate is raised.
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