DUBLIN - Ireland is set to take a majority stake in top lender Bank of Ireland as part of a massive international bailout that will effectively give the state full ownership of the country's two other biggest banks.

The European Union and International Monetary Fund (IMF) have agreed a bailout of Ireland to shore up its banks and give them access to cheaper state funding.

The loan was expected to be up to 85 billion euros ($114 billion) and billions of that could be used immediately to re-capitalize the banks, but most will be a backstop in case they need more in the future and to ease funding strains.