BRUSSELS (MNI) – Ireland remains on track to meet the necessary
preconditions for a further E8 billion of financial aid from the EU and
International Monetary Fund, officials said on Thursday in a statement.
“Programme implemtation continues to be strong,” said the
statement, issued by the European Commission, European Central Bank and
IMF.
“The authorities have completed the key initial phase of the
comprehensive financial sector reforms launched in March,” said the
report.
“The fiscal deficit limit of 10.5% percent of GDP in 2011 is
expected to be met and important structural reforms are being put in
place.”
Ireland’s forthcoming 2012 budget should bring the government’s
fiscal deficit to no more than 8.6% of GDP, “striking a balance between
debt reduction imperatives and limiting the drag on growth and job
creation,” according to the report.
Although economic growth in Ireland was faster than expected in the
first half of 2011, slower growth abroad will likely dampen exports and
Irish growth to about 1% this year and next, the three institutions,
known as the ‘troika’ said.
Confidence in Ireland’s banks has improved thanks to
recapitalisations and deleveraging, the report noted, but “further
progress” is needed, it said.
EU countries and the IMF have approved nearly E70 billion in loans
to help Ireland deal with an economic crisis that has hit its banks and
housing sectors hard.
In contrast to Greece, which is struggling to meet the targets of
its own EU-IMF bailout programme, Ireland has been held up by European
officials as a model student.
EU finance ministers and the IMF’s board will need to formally
approve the report before Irelan’s next tranche of aid, consisting of
E3.8 billion from the IMF and E4.2 from EU countries, can be disbursed.
Another review of the country’s progress has been scheduled for
January 2012.
–Brussels newsroom, +324-952-28374 pkoh@marketnews.com
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