Lenihan: EU/IMF contingency fund would be 'very desirable'

The Finance Minister Brian Lenihan has said it would be "very desirable" if a substantial contingency capital fund were to be made available by the EU and the IMF for Ireland.

He said such a fund would help to create confidence in terms of the firepower available to the Irish banking system.

Earlier in the Dáil, opposition parties accused the Government of handing over Ireland's economic independence to outsiders.

The rowdy scenes in the Dáil followed on from confirmation from the Central Bank Governor Patrick Honohan that high-level discussions involving the IMF and European Commission would result in a loan being offered to Ireland.

But the Finance Minister Brian Lenihan said the discussions between the Government and the IMF were being carried out "in the interests of the country".

The bondmarkets have reacted positively, but there is still a long way to go to restoring Ireland's reputation abroad.