Ending weeks of opposition to a European Union bailout, heavily-indebted Ireland has agreed finally with the EU and the International Monetary Fund (IMF) on a multi-billion euro rescue package to avert bankruptcy.

Ireland will be the first country to receive financial support from the euro 750 billion (nearly a trillion dollars) financial safety net, spread by the EU and the IMF six months ago, to help euro zone nations facing liquidity crisis.

It was set up after debt-ridden Greece slipped to the verge of a bankruptcy in May and had to be rescued by a euro 110 billion lifeline from the EU and the IMF.

The level of assistance for Ireland from the Financial Stability Facility will be decided during the negotiations with the EU and the IMF in the coming days, but European Commission sources in Brussels indicated that it could be between euro 80 billion and 100 billion.

The agreement on the second bailout of a euro zone nation within six months came after the Irish cabinet at an emergency meeting in Dublin decided Sunday night to make a formal request for a financial assistance from the EU, which it rejected until a few days ago.

“I confirm today that the government decided that Ireland apply for an assistance from the European Union,” Prime Minister Brian Cowen told a news conference after the cabinet meeting.

He said the governments request was transmitted to the European authorities in the evening and “they have agreed to our request”.

Cowen said a formal negotiation on the level of EU aid and other aspects of the bailout will begin now on the basis of a programme worked by the government of Ireland, the EU, the IMF and the European Central Bank during four days discussions in Dublin.

He said he expected an agreement to be finalised within the next few weeks.

The government will have to fulfil certain conditions, including drastic spending cuts, in return for the bailout and they may be unveiled when the negotiations are expected to be completed by the end of this month.

However, Irelands low corporate tax of 12.5 per cent, which has been a bone of contention with its EU partners, will not be increased, Cowen said.

The finance Ministers of the 16 euro zone nations, who held a telephone conference while the Irish cabinet was meeting, also confirmed that the “Celtic Tiger” will be bailed out with the support of the EU and the IMF.

Ireland got into financial trouble after it spent more than euro 45 billion to rescue the countrys banks, which faced bankruptcy following the collapse of the once booming property business.