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02 September 2011

IMF completes third review under the extended arrangement with Ireland


The Executive Board of the IMF completed the third review of Ireland's performance under an economic programme supported by a three-year arrangement under the Extended Fund Facility. The completion of the review enables the immediate disbursement of €1.48 billion.

The arrangement for Ireland, which was approved on December 16, 2010, is a part of a financing package amounting to €85 billion (about US$123 billion) also supported by Ireland’s European partners through the European Financial Stabilisation Mechanism and European Financial Stability Facility, and bilateral loans from the United Kingdom, Sweden and Denmark, and Ireland’s own contributions.

Following the Executive Board’s discussion, Mr Naoyuki Shinohara, Deputy Managing Director and Acting Chair, said: “The Irish authorities have maintained resolute implementation of their economic programme. The economy is showing signs of stabilisation and financial market conditions have also recently improved. Ireland’s economy, however, faces a weakening in trading partner growth, which could dampen the pace of Ireland’s recovery in the near term. The authorities are pushing forward financial sector reforms which are at the heart of Ireland’s response to the crisis. Bank recapitalisation has been completed with welcome private investor participation. Legal restructuring of banks is ahead of schedule and their boards and management teams are being renewed. An ambitious bank deleveraging programme is underway, which will gradually reduce reliance on central bank funding. The authorities are implementing major fiscal adjustment effectively by keeping the budget on track to meet the 2011 targets. Building a strong consensus on a medium-term fiscal plan in the coming months will reinforce confidence in achieving the substantial fiscal consolidation ahead, and reduce uncertainties around tax and spending policies for households and businesses. The recent establishment of a Fiscal Advisory Council will support sound fiscal policies on an ongoing basis.”

Press release



© International Monetary Fund


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