21 November 2010 Last updated at 20:58 GMT
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| Mr Cowen appealed for solidarity from the Irish people |
The Republic of Ireland and the EU have agreed a financial rescue package, Irish Prime Minister Brian Cowen has confirmed.
The Taoiseach said the amount and terms would be negotiated in the coming days with the EU and the IMF.
Irish Finance Minister Brian Lenihan said the amount would be less than 100bn euros (£85bn; $136bn).
Mr Cowen said the government would be publishing a four-year budget plan that would restructure the banking industry. EU Finance Commissioner Olli Rehn, speaking in Brussels, said the loans would be provided to Ireland over a three-year period.
Reuters news agency quoted senior EU sources as saying the loans would total 80-90bn euros.
Mr Cowen said the Irish Republic's banks would be made smaller, as part of a restructuring of the banking industry.
The other part of the bail-out package would help to reduce the government's budget deficit to a target of 3% of GDP by 2014, Mr Lenihan said.
Solidarity appeal The global financial crisis has dealt the Irish Republic a hard blow.
Once known as the Celtic Tiger for its strong economic growth - helped by low corporate tax rates - a property bubble burst leaving the country's banks with huge liabilities and pushing up the cost of borrowing for them and the government.
Announcing the bail-out, Mr Cowen appealed for solidarity.
"To the Irish people I say simply this: We should not underestimate the scale of our economic problems, but we must have faith in our ability as a people to recover and prosper once more.
"The task of rebuilding our economy falls to our own efforts as a people," he told a news conference following a cabinet meeting on the rescue plan.
"That is where the focus of our efforts must turn over coming weeks, beginning with the four-year plan and then the budget. And now we need to show the solidarity in our own country that our neighbours have shown to us at this time."
Reuters news agency quoted senior EU sources as saying the loans would total 80-90bn euros.
Mr Cowen said the Irish Republic's banks would be made smaller, as part of a restructuring of the banking industry.
The other part of the bail-out package would help to reduce the government's budget deficit to a target of 3% of GDP by 2014, Mr Lenihan said.
Solidarity appeal The global financial crisis has dealt the Irish Republic a hard blow.
Once known as the Celtic Tiger for its strong economic growth - helped by low corporate tax rates - a property bubble burst leaving the country's banks with huge liabilities and pushing up the cost of borrowing for them and the government.
Announcing the bail-out, Mr Cowen appealed for solidarity.
"To the Irish people I say simply this: We should not underestimate the scale of our economic problems, but we must have faith in our ability as a people to recover and prosper once more.
"The task of rebuilding our economy falls to our own efforts as a people," he told a news conference following a cabinet meeting on the rescue plan.
"That is where the focus of our efforts must turn over coming weeks, beginning with the four-year plan and then the budget. And now we need to show the solidarity in our own country that our neighbours have shown to us at this time."
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