Ireland, EU agree on financial rescue package

Speaking at a press conference in Government Buildings in Dublin, Cowen said the rescue package, which will run for three years, will be tied to a banks restructuring and deficit reduction plan.

He said: "A formal process of negotiation will now commence that will lead to the provision of assistance, on the basis of a program to be negotiated by the government with the European Commission and the International Monetary Fund, in liaison with the European Central Bank."

"A central element of the program will also be to support further deep restructuring and the restoration of the long-term viability and financial health of the Irish banking system," Cowen said.

Cowen also said Ireland's 12.5-percent corporation tax rate was not a part of the negotiations.

The amount of funding will be decided during the negotiations. This is likely to involve the provision of tens of billions of euros from Europe to help Ireland, at interest rates that are more affordable than those currently available on international markets.

The financial assistance package to Ireland will be financed from the European financial stabilization mechanism (EFSM) and the European financial stability facility (EFSF), possibly supplemented by bilateral loans to be negotiated by EU member states; Kazinform cites Xinhua.

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