Irish Parliament meets tomorrow to discuss budget deficit

The Irish Prime Minister Brian Cowen will hold a cabinet meeting on Sunday to finalise its four-
year-plan to cut its budget deficit to below 3 per cent as part of Dublin's austerity measures, the
BBC reported yesterday.

Meanwhile, a bailout for Ireland looked probable after the country's central-bank governor said
Ireland was likely to accept a loan worth ''tens of billions of pounds'' from the European Union
(EU) and the International Monetary Fund (IMF).

A team, led by Ajai Chopra and other banking experts of EU, IMF and European Central Bank,
is already in the Dublin to study the books of the country's lenders, said IMF spokeswoman
Caroline Atkinson at a press briefing, adding that Ireland has not yet made any request for IMF
financial support.

However, Deputy Prime Minister Mary Coughlan has insisted the country will not raise its low
corporation tax rate, which is currently at 12.5 per cent, in return for a EU-led bail-out. France
and Germany want Dublin to raise the tax in return for aid, saying that low tax gives the country
too much of an advantage in attracting overseas investment.

Earlier, Irish central bank governor Patrick Honohan said he believes the government will have
to accept a ''very substantial'' loan.

''Ireland would probably pay an interest rate close to 5 per cent. That would be similar to the rate
offered to Greece when it requested a bailout in April,'' he pointed out.