EUROPEAN GOVERNMENTS have cleared the release of the next round of rescue loans to the Government under Ireland’s bailout, bringing the total drawn down this year to more than €30 billion.

The European Council said its decision to sanction the third round of loans reflected the positive outcome of the third quarterly review of the rescue programme.

With €23 billion in emergency loans already drawn down since the start of the year, the Government is now set to borrow a further of €7.5 billion by the end of next month.

The new funding includes €500 million from Britain. This is the first loan from Dublin’s bilateral deal with London.

Separate arrangements are in place with Sweden and Denmark but no money has yet been transferred.

“The third instalment of the EU financial assistance to Ireland amounts to €5.5 billion, and will be disbursed in two instalments, one of up to €2.5 billion by the end of September and the other of up to €3 billion in October,” the council said yesterday in a statement. The IMF will release a further €1.5 billion, the council added.

The decision yesterday to provide the money was made by written procedure, meaning there was no meeting of ministers

The council also agreed to provide €11.5 billion to Portugal under its €78 billion bailout.

“During their visits to Dublin in the first half of July and to Lisbon at the beginning of August the three institutions noted that the Irish and Portuguese programmes were on track, with the respective authorities meeting important programme milestones and demonstrating their commitment to addressing underlying weaknesses in public finances and the financial sector and as regards competitiveness,” the council said.

Over the course of the three-year bailout, Ireland will receive loans totalling €45 billion from its European partners and €22.5 billion from the IMF.

The European aid is being sourced from two bailout funds, one operated by the European Commission and the other by euro zone countries.

The State is contributing €17.5 billion to the rescue effort from its own resources.