IRELAND – The National Pensions Reserve Fund (NPRF) has confirmed it will contribute €10bn ($13bn) as part of Ireland’s bailout package.
The Irish government has also made an agreement with the European Union (EU), the European Central Bank and the International Monetary Fund (IMF) to provide €85bn of financial support following an emergency meeting in Brussels.
Ireland's contribution to the €85bn facility will be €17.5bn, which the government said it would take from the NPRF and cash.
The government said it would use NPRF to support the government bond market and infrastructure investment last week. (Global Pensions: November 25, 2010).
The €85bn bailout package will pay €35bn to support the banking system; €10bn for immediate recapitalisation and €25bn to be used on a contingency basis.
The government said in a statement: "The purpose of the external financial support is to return our economy to sustainable growth and to ensure that we have a properly functioning healthy banking system.
"The assistance of our EU partners and the IMF has been required because of the present high yields on Irish bonds, which have curtailed the State's ability to borrow. Without this external support, the State would not be able to raise the funds required to pay for key public services for our citizens and to provide a functioning banking system to support economic activity. This support is also needed to safeguard financial stability in the euro area and the EU as a whole."
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