Dublin, Ireland, United Kingdom (AHN) – After hedging for several days, Ireland finally admitted Thursday that Dublin needs the international bailout being offered by the European Central Bank or the International Monetary Fund.

Irish Central Bank Governor Patrick Honohan said the international loan would likely happen to deal with concerns of the market over Ireland’s international debts. Finance Minister Brian Lenihan defended the Irish government’s battling the bailout because it has to protect the interest of taxpayers.

An international loan of up to $127.5 billion (GBP85 billion) is expected to be offered to Ireland, and Dublin will likely accept the assistance to reassure international investors. Britain has separately also offered Ireland $10.5 billion (GBP7 billion) in assistance.

Despite agreeing in principle to the bailout, Irish Prime Minister Brian Cowen stressed Dublin has not given up its sovereignty. Cowen said the main focus of the ongoing discussions and consultations with financial experts is on Ireland’s banking situation. He assured Irish officials will work closely with the European Commission, ECB and IMF to ensure Dublin’s real economy remains strong and sustainable.

On Thursday, 12 financial experts arrived in Dublin to start discussions with Irish officials on how to work out the bailout.

Despite the bailout, IMF assured Irish residents the assistance would not result in the country’s social welfare programs being reduced, public servants losing their jobs, tuition fees going up, public sector salaries being cut and new property taxes being introduced.

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