Sunday, February 6, 2011

Ireland Gets 3.6 Billion Euros from Rescue Fund

Ireland has received a first tranche of 3.6 billion euros ($4.9 billion) from the euro zone rescue fund, slightly more than the initial amount agreed, Reuters reports.

The effective lending cost to Ireland was 5.9 percent.

The European Financial Stability Facility (EFSF) raised 5 billion euros from a debut sale of five-year bonds late last month, which, of course, will crowd out private sector borrowing.

The funds are to be used to help finance the 85 billion euro EU/IMF bailout of Ireland, which chiefly benefits the banks that hold Irish debt. .

The EFSF has said its Irish programme would include two more benchmark bonds of 3 to 5 billion euros each this year. It plans to issue 17.6 billion euros in 2011 and as much as 4.9 billion euros in 2012.

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