DUBLIN - Debt-crippled Ireland has formally applied for a massive EU-IMF loan to stem the flight of capital from its banks, joining Greece in a step unthinkable only a few years ago when Ireland was a booming Celtic Tiger and the economic envy of Europe.

European Union finance ministers quickly agreed in principle to the bailout, saying it is "warranted to safeguard financial stability in the EU and euro area." But all sides said on Sunday that further weeks of negotiations loomed to define the fund's terms, conditions and precise size.

Ireland's crisis, set off by its foundering banks, drove up borrowing costs - not only for Ireland but for other weak links in the eurozone such as Spain and Portugal. Ireland's agreement takes some pressure off those countries, but they still may end up needing bailouts of their own.