UPDATE 1-EU/IMF deal for Ireland seen on Sunday -sources

* Decision on Ireland bailout expected Sunday

* EU finance ministers expected to hold teleconference

* Portugal’s situation not under discussion

(Adds detail, quotes, background)

By Jan Strupczewski

BRUSSELS, Nov 26 (BestGrowthStock) – An 85 billion euro rescue
package for Ireland from the European Union and the
International Monetary Fund is very likely to be announced on
Sunday, euro zone sources said.

“It is quite likely that the deal will be announced on
Sunday,” one euro zone source with insight into the negotiations
with Ireland said on Friday.

A team of officials from the European Commission, the
European Central Bank and the IMF has been negotiating the
details of the package in Dublin since last week.

“The expected scenario is that the ministers would approve
the package and generally give a go ahead to the programme, as
there are some legal steps that need to be taken by the Ecofin,”
the source said, referring to EU finance ministers.

“Sunday should be the decision on substance,” he said.

Several other euro zone sources also pointed to Sunday as
the most likely day for the announcement.

Out of the 85 billion euros that Ireland would get, some 35
billion would be to support its ailing banking and financial
sector and 50 billion euros would support the government’s
fiscal needs, the euro zone source said.

“It was a 50-35 arrangement, but the exact breakdown on the
banks is a difficult business, the numbers are still changing.
The 35 billion is for the financial sector, that will be
allocated over time,” the source said.

It will be up to euro zone and EU finance ministers to
decide the exact division of the total amount of aid between the
various lending agents — the European Financial Stability
Mechanism (EFSM), the European Financial Stability Facility
(EFSF) and the IMF.

The EFSM is a 60 billion euro fund overseen by the European
Commssion and the EFSF is a 690 billion euro pool of funds, with
440 billion from the EU and 250 billion from the IMF.

“Something in the region of 20 billion would be the IMF’s
share,” the euro zone source said. “The exact share of the EFSM
and EFSF is still to be decided — it is completely up to the
finance minsters to decide,” the source said.

The source also said that there was no pressure from the
euro zone on Portugal to accept EU financial aid, but rather for
Portugal to clarify the consolidation measures and structural
reforms it planned.

“I wouldn’t say there is pressure. We are not discussing
Portugal at all at the moment,” the source said.

“We are discussing their policies. Not that they should have
more ambitious targets, but that they should inject more clarity
into what they do. Be a lot more specific on consolidation and
structural reforms,” the source said.

“The idea is to raise the confidence that they are able to
meet the targets that they have, but the targets themselves are
considered reasonable,” the source said, adding there was
positive sentiment in the euro zone on Lisbon’s 2011 budget.

“What people would like to see is more details on how the
targets are going to be met if something happened, what do they
have in the hat that they can pull out, to calm down the
markets,” the source said.

(Additional reporting by Paul Taylor in Paris, Ilona
Wissenbach in Brussels and Carmel Crimmins in Dublin)

(Reporting by Jan Strupczewski, editing by Rex Merrifield)

UPDATE 1-EU/IMF deal for Ireland seen on Sunday -sources