Finally, the truth has been accepted. Ireland has agreed to accept the multi-billion Euro international bail out package to save the crippling economy which is unable to come out of it’s crisis. Finance Minister of Ireland has finally agreed that the bail out package will be extremely helpful to stabilize the finances of the nation.
The banks in Ireland were reeling under severe financial crisis and the failing of the banks could have created a negative pressure on the neighboring countries of Spain and Portugal. The bailout package given by the European Central Bank and International Monetary Fund have heaved a sigh of relief on the other Euro zone members who are also facing huge debts and deficits.
The acceptance of loan offer was really humiliating for Ireland as only few days ago the government was claiming that it was not necessary. The Irish cabinet has signed the letter of request today.
The Government of Ireland is running at a deficit of 19 billion Euros ($26 billion) and it will be financed at a much lower rate. The bail out money will help the nation pay their bills and make a contingency fund to bail out the debt ridden banks which are running short of cash. Experts say that Ireland’s 12.5% tax on business profits should not be touched as it has lured around 600 US based companies to set up base in this nation.
This was second bailout package by the International monetary agencies as they bailed out Greece in the month of May and Portugal seemed to be next in line.