Latest bailout tranche gets approval as crisis mounts

IRELAND’S next bailout tranche of €8.5 billion was approved by eurozone finance ministers yesterday as they struggled to find a way to fund Spain and Italy, both under massive pressure from the markets.

The next round of funds will come in January following the fourth review of Ireland’s books by the EU/IMF. The IMF will provide €3.8bn, the EU €4.2bn and €500 million will come from Britain. Ministers also agreed, following almost two months of delays, to release the €8bn tranche for Greece after political leaders signed up to the tough conditions.

The finance ministers are trying to find a way to increase the fire power of their bail out fund, the European Financial Stability Fund (EFSF), having admitted that their original idea to leverage it to €1 trillion is unlikely given the tough market conditions.