The financial assistance programme provides for assistance of up to €85bn over a three-years horizon, €50bn to cover public finance needs and up to €35bn to cover banking assistance, including a contingency element.
€67.5bn of the overall package (i.e. €22.5 billion each) will be shared equally amongst:
(i) the EFSM,
(ii) the European Financial Stability Facility, together with bilateral loans from the United Kingdom, Denmark and Sweden (together: €4.8bn), and
(iii) the International Monetary Fund.
Half of the banking support measures (€17.5 billion) will be financed by an Irish contribution through its treasury cash buffer and investments by Ireland's National Pension Reserve Fund (NPRF).
The average interest rate on EU funds was initially equivalent to IMF lending conditions and, on the basis of market prices of end-November 2010, was approximately 5.7%, significantly lower than the cost of funding Ireland would face on the markets.
In July 2011, EU leaders agreed to reduce the interest rate and to extend the maturity on the EU loans provided to Ireland under the programme. This decision has brought about a significant saving to Irish taxpayers and has helped to improve the country’s debt sustainability.