State must pay €11bn into bailout fund

IN two years time, Ireland will have to find up to €11 billion to contribute to the EU’s new bailout fund, the European Stability Mechanism.

EU leaders last night came close to finalising the details of the new fund that will replace the one from which Ireland borrowed last year when borrowing on the open market became too expensive.

The fund will be worth €700bn, contributed by eurozone countries, and €80bn of this will have to be cash up front over four years.