Ireland Passes Bailout Package Despite Opposition

Ireland's parliament approved a multi-billion euro EU/IMF bailout package on Wednesday in the face of opposition threats to renegotiate the deal to force losses on some senior bondholders in Irish banks.

Brian Lenihan pushed through the 85 billion euros (£72.5 billion) package with the support of independent MPs and told the centre-right Fine Gael party that its proposals to lean on senior bondholders would fail because of opposition from the European Central Bank.

"Those who think we can unilaterally renege on senior bondholders against the wishes of the ECB are living in fantasy land," he said.

Under the EU/IMF deal, Irish people face years of cutbacks and tax increases in return for fresh capital to shore up the banks, preserving full repayment of their senior bonds -- those first in line to be repaid in the event of any default.'

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