Irish Finance Minister Brian Lenihan has confirmed that his country will ask for bailout funds from the EU and the IMF to tackle its huge debt and save its banking sector.

Ireland will ask the European Union and the International Monetary Fund (IMF) for a financial bailout package to tackle its huge budget deficit and save its struggling banking sector, the Irish Finance Minister confirmed on Sunday.

Ahead of a cabinet meeting later in the day, Brian Lenihan told Irish radio that "we should apply for a program and open formal negotiations."

He did not specify the size of the bailout, but said it would not be a "three-figure sum," knocking down media reports suggesting the total sum could be over 100 billion euros ($137 billion).

Tense talks

Irish officials have been holding talks with representatives from the EU, the IMF and the European Central Bank since Thursday. Ministers are to meet next week to finalize austerity measures aimed at saving 15 billion euros by 2014.

Ireland's budget deficit is set to hit an eye-watering 32 percent of gross domestic product, way in excess of the EU's 3 percent limit. Its banking sector was left reeling after a property boom that fueled reckless lending practices turned to bust, leading to a multi-billion euro bailout of its largest financial institution, Anglo-Irish.

Fierce criticism

The announcement comes after fierce criticism from the ranks of the ruling party, Fianna Fail as well as the opposition about the way the government has handled the crisis.

"Fianna Fail as a party must change and it must call an election, even if it means we will lose power," Fianna Fail lawmaker John McGuiness wrote in the Irish Mail on Sunday newspaper. "[Prime Minister] Brian Cowen must step down," he added.

Ireland has also been under fire internationally for holding on to its very low corporate tax rate of 12.5 percent, which countries like Germany believe gives Ireland an unfair advantage in attracting investment, while at the same time taking advantage of EU and IMF funds.

But Lenihan said on Sunday that talks on the tax rate "are not on the agenda."