Europe, IMF launch 'urgent' Irish bank rescue

The European Union and the International Monetary Fund on Tuesday announced the launch of an urgent mission to the Republic of Ireland, to finalise emergency support for the country's troubled banking sector. 

Irish Finance Minister Martin Mansergh in Brussels Council of the European Union

Ireland's public deficit is more than 30 per cent of output this year. The European partners fear that the crisis there and in Portugal may destabilise the entire euro zone.

The arrival of experts from the European Commission, the European Central Bank and the IMF have virtually dashed Irish hopes it can ride out the debt crisis alone.

The euro fell against the dollar in Asia on Wednesday, as US Treasury Secretary Timothy Geithner urged Europe to act "very, very quickly."

Athens spent months asking for help before the EU-IMF pulled together a 110-billion-euro rescue package for Greece last spring. Delays pushed the cost up for main contributor Germany.

This time, the money-holders appear to be pressing Ireland to accept a bailout - to the tune of 70 billion euros.