• incoming Irish government cannot renegotiate interest rate on IMF portion of loan
  • will have to see whether Ireland will need to take additional fiscal measures in 2013,14 and 15
  • premature to put number on additional Irish adjustment needed to meet deficit target of 3% GDP by 2015
  • says IMF agrees with European position that Ireland cannot impose haircuts on unguaranteed senior bank debt

also

  • IMF says contagion threat from Ireland is significant, restoring financial stability would contain that threat
  • Political risks in Ireland are considerable
  • Ireland’s fiscal outlook might deteriorate opening a larger financing need
  • Irish capability to repay loans satisfactory, significant risks could hit capacity to repay
  • Irish 4-yr fiscal plan is broadly appropriate, further fiscal measures likely needed
  • IMF forecasts Irish Budget Deficit to hit 5.1% GDP by2014, 4.8% by 2015