Britain to offer Ireland £7 billion

Britain is to offer Ireland £7 billion to help bail out the country and its banking sector as Ireland tussles with the European Union over whether to accept a bailout, according to the Daily Telegraph and others.

The International Monetary Fund (IMF), which is also involved in the negotiations, recently noted British banks’ exposure to the euro periphery totalled 14% of British GDP.

The IMF said exposures to Ireland were particularly high relative to France and Germany. (article continues below)

The British government still has substantial holdings in the national banking sector through Royal Bank of Scotland, Lloyds Banking Group and Northern Rock, which has an Irish subsidiary.