London, Nov. 18: Ireland, which is facing a deep recession and grave financial and banking crisis, is ready to accept a European Union and International Monetary Fund bailout.
The Irish government ministers met the representatives of the European Central Bank, the European Commission and the International Monetary Fund in Dublin on Thursday and held discussions about the best way to bring stability to the Irish banking sector.
The Irish government, led by Taoiseach (Prime Minister), Mr Brian Cowen, reiterated that it has made any formal appeal for European Union aid and on Thursday and rejected suggestions that the Dublin discussions represent loss of sovereignty for Ireland.
“There is no question of a loss of sovereignty for Ireland,” Mr Cowen said in Dublin.
The Irish Central Bank governor, Mr Patrick Honohan, said that in his opinion the Irish Republic would accept a “very substantial loan” from the European Union.
“The expectation on my part is that the negotiations will be effective and that a loan will be made available and drawn down as necessary,” Mr Honohan said.
The Irish finance minister, Mr Brian Lenihan, told the Parliament that if the negotiations produce a “substantial contingency capital fund being made available to back Ireland… but not drawn down.”
“The purpose of the technical discussions which are being initiated in Dublin today is therefore to assess how it may be possible to build on the significant interventions already undertaken by the Irish authorities to secure a permanent resolution to the problems of our banking system,” the Irish finance minister said.