FRANKFURT (MNI) – Following is the text of the statement issued
Sunday by the Central Bank of Ireland following the decision of European
Finance Ministers to grant financial aid to Ireland in a package
totaling E85 billion.

Ireland itself will contribute E17.5 billion to the aid package and
will cease contributing to the rescue fund for Greece. The remaining
E67.5 billion of the Ireland package will come from Eurozone and
non-Eurozone EU members and the International Monetary Fund:

“The Central Bank of Ireland today welcomed the agreement of the
Programme for Support negotiated by the Irish Government with the
European Commission, European Central Bank and the IMF.

Governor Patrick Honohan said:

‘The support of the European Commission, European Central Bank and
the IMF underpins a clear economic and financial policy path for
Ireland. The first steps on this path have already been taken. The
backstop funding now available means that those policies — both fiscal
and banking — can be fully implemented and that market confidence
returns. The international authorities have demonstrated their
confidence that Ireland can bring its debt dynamics under control. The
programme also endorses the current policy approach to banking. It
provides the necessary assurance to achieve a convincing and rapid
reconfiguration and downsizing of the banks, putting the Irish banking
system on a convincingly secure footing. The Central Bank will continue
to provide all necessary support to the system.’

Head of Financial Regulation, Matthew Elderfield, said:

‘The measures announced today provide an immediate and significant
strengthening of the capital position of the Irish banking sector and
mean that considerable contingent capital facilities are also in place
as a further backstop for the banks. Similarly, the programme of
deleveraging that is being accelerated will ensure the banking system is
smaller and fitter, with better compliance with international liquidity
standards. These actions will result in a stronger and more stable
banking system for the benefit of depositors and investors.’

–Frankfurt bureau tel.: + 49-69-720142. Email: frankfurt@marketnews.com

[TOPICS: MGX$$$,MT$$$$,M$X$$$,M$$CR$,M$$EC$]