WASHINGTON (MNI) – The following is the text of a joint statement
on Ireland by the IMF and European Commission released Sunday:

Joint Statement on Ireland by EU Commissioner Olli Rehn and IMF
Managing Director Dominique Strauss-Kahn

Mr. Olli Rehn, European Union Commissioner, and Mr. Dominique
Strauss-Kahn, Managing Director of the International Monetary Fund
(IMF), issued the following joint statement on Ireland today:

“We strongly support the economic program announced today by
Ireland. It is a forceful response to vulnerabilities in the banking
system imposing a heavy cost on the budget and, in turn, hurting the
prospects for growth that Ireland needs for an enduring solution to the
crisis. This program articulates a clear strategy for tackling today’s
problems and for harnessing the enormous growth potential of this open
and dynamic economy.

“Swift and sustained implementation of this program will create a
smaller banking sector that is robust and well capitalized, and able to
serve the needs of Ireland’s economy. It also offers a road map for
sound public finances by setting strong, upfront actions in a multi-year
framework.

“On the financial side, the program shows the authorities’
determination to reorganize the banking sector while deleveraging the
banks and injecting fresh capital into them. The program will also
strengthen regulation and supervision to prevent a repeat of the costly
mistakes of the past. On the fiscal side, the program spells out both
spending and revenue efforts over several years to repair the budget
position, with due regard for Ireland’s system of strong social
protection.

“Carrying out this plan calls a sustained effort by the government
and people of Ireland, but it offers the goal of stable, job-creating
growth.

“Ireland’s international partners will stand beside it in its
effort. The EC and bilateral lenders-together with the international
community through the IMF-will offer financing that will be complemented
by the Irish authorities so as to amount to 85 billion. By shielding
Ireland from the need to go to the markets for a considerable period of
time, this support places financing at Ireland’s disposal on more
favorable terms than it could obtain elsewhere for the foreseeable
future. This package also offers assurance that Ireland’s banking system
will be adequately funded, including through the buffer of 17.5 billion
from the nation’s cash reserves and other liquid assets.”

** Market News International Washington Bureau (202) 371-2121 **

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