The document summarizes additional details about Ireland's €85 billion rescue package: - The €10 billion capital injection for Irish banks will raise their core tier 1 capital ratios to at least 12% - The Irish National Pension Reserve Fund will provide €12.5 billion - Banks with core tier 1 ratios below 10.5% will receive additional capital from a €25 billion contingent capital facility - Liability management of subordinated bank debt will apply to more banks than just Anglo Irish - A new law will regulate small credit unions in 2011 - The average 5.8% interest rate on loans will have maturities ranging from 4.5 to 10 years - Ireland

1. http://marketsandbeyond.blogspot.com/
http://www.pcgwm.com/
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Ireland rescue package: some more details
Further to yesterday’s information contained in the EU press release, I found some
additional details that may be of interest to readers:
• The EUR 10 billion capital injection will raise core tier 1 ratios to at least 12%
• The Irish National Pension Reserve Fund will provide EUR 12.5 billion
• Any banks whose core tier 1 is seen falling below 10.5% will receive additional
capital through a EUR 25 billion contingent capital facility established through the
program. The stress tests will include a third party review of asset quality to garner
additional credibility
• Liability management of subordinated bank debt will be "more widely applied" than
just Anglo-Irish bank
• A special distressed banking law will be introduced in 2011 for the small 'credit
unions' sector
• The 5.8% interest rate is an average since the maturity of loan will range from 4 ½
years to 10 years.
• Ireland will have an extra 12 months, i.e. until 2015, to lower its deficit down to 3%
• Ireland will discontinue its financial assistance to the EU loan to Greece
The Irish contribution coming out the INPRF represents 50% of its total assets: as noted
yesterday it is a disgrace. I do not understand how Ireland accepted this.
Still, this agreement has to be accepted by the Irish Parliament; the vote should be passed
successfully despite only 2 seats majority (2 independents).

2. http://marketsandbeyond.blogspot.com/
http://www.pcgwm.com/
2
The new loan participation for any new EU rescue is (sorry my file in French!):
Belgium 3.64%
Germany 28.43%
Ireland
Greece
Spain 12.47%
France 21.35%
Italy 18.76%
Cyprus 0.06%
Luxembourg 0.26%
Malta 0.09%
Netherlands 5.99%
Austria 2.91%
Portugal 2.63%
Slovenia 0.49%
Slovakia 1.04%
Finland 1.88%
France and Germany bear 50% of the total burden: unsustainable, at least for French
finances if its AAA rating is to be retained (necessary for the EU lending vehicle to be AAA
rated); I have therefore difficulties to see how the EUR 750 billion package decided in May
could be raised in its entirety. My conclusion is that European countries cannot afford a
Spanish bailout.
Source:
Deutsche Bank: Thoughts on Ireland's aid programme
https://gm-secure.db.com/welcome.html