The government has insisted that, after the first €10bn to be injected into banks in early 2011, the next €25bn would be "contingent" on more stress testing of the lenders. The troika of international lenders have together pledged €67.5bn of the €85bn rescue package and €17.5bn will be drawn from Ireland's own resources – the National Pension Reserve Fund and its remaining cash balances.
On the night of the EU-IMF loans press conference two weeks ago, Taoiseach Brian Cowen said the €25bn would not necessarily be used, while €50bn in loans designed to plug the budget deficits would be enough to run the state for the next three years.
But Chris Pryce, lead analyst at Fitch Ratings, the ratings agency that downgraded Ireland last week, estimated that the €50bn would last for only two-and-a-half years because €22bn alone, including bond repayments, would be required next year.
"You would not get three years out of it," Pryce told the Sunday Tribune.