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THE IMF HAS confirmed the release of almost €1.5bn of new bailout funding, with some positive analysis of the shape of Ireland’s economic recovery.
In a statement published last night, marking the end of the third review of the bailout programme, the IMF acknowledged the government’s progress in implementing austerity measures in Ireland, and its work to reform the banking sector.
“The Irish authorities adopted a comprehensive strategy in March to reorganise and deleverage the domestic banks, and to strengthen their capital base,” the IMF said, adding that the reform of the financial system was “ahead of schedule in some areas”.
These actions are helping to restore confidence as part of the government’s strategy to put the economy on a path of sustainable growth, sound public finances, and job creation.Recent indicators are consistent with a return to positive growth in 2011.
The acting chairman of the IMF’s executive board, Naoyuki Shinohara, added that continued progress of reforms under the bailout programme were essential to support the recovery and rebuild confidence in the country’s economy.
The announcement came after the EU Council authorised the release of €5.5bn in bailout funds of its own, which will be paid in two instalments over the next two months.
The EU’s statement also confirmed that, for the first time, Ireland would be making use of its bilateral loan facility with the UK – borrowing €500m from its neighbour and largest trading partner.
The latest loans from the EU will bring Ireland’s total bailout borrowings from Europe to €9.1bn, while the total borrowings from the IMF will now stand at just under €8.7bn.
Combined, Ireland will have drawn down €16.3bn of the €67.5bn set aside for it from emergency funding sources under the various bailout programmes.
The IMF’s statement also confirmed previous reports that the Irish government would publish a “medium-term fiscal consolidation plan for 2012 to 2015″ later this year, outlining the structure of the next four annual budgets.
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medium term fiscal consolidation plan 2012-2015, my arse. they’ll just come back to mister Joe public and **** them again with more taxes and levies even after sayin in election campaign that neither would happen. same aul ***** but in different clothes.
There’s a 20bn gap between tax and expenditure. What is your proposal for sorting that out without raising taxes or cutting spending?
Or do you think the IMF will fund us forever?
@Neil – Keith has every right to be annoyed. I realise spending cuts and tax increases can often be a necessity, but its the fact that FG can u-turn on their election promises so easily that frustrates me!
@Rob
The only party I can remember running on a policy of no cuts in spending or tax increases being necessary was Sinn Fein. The Pension fund would pay for everything.
I don’t recall Fine Gael or Labour having a policy of breaking the deal with the IMF/ECB.
Have you a source for this?
SinnFein, my arse !! Don’t get me started. It makes no difference who is in Govt for the next 5-10 years. Whoever is in Govt will have to do what the IMF/ECB tell them. Plain & simple. FF & Co are responsible for not doing what Govts are elected to do – govern. The electorate shares a portion of the blame, too. People elected them in & in the end, Irl Inc got what it voted for. Time to stop the blame game & S.U.M.O. on this – shut up, move on. What has happened – happened. That can’t be undone & we “all” have a responsibility to make sure it NEVER happens again. Time will tell. What I most want to see out of this mess is for those who failed to govern in Govt & financial institutions brought to justice for their betrayal of this nation. Will that happen ? Don’t hold your breath. Methinks it’s because they are all too connected & afraid to make a move for fear of who will start spilling the beans. If right was right, the IMF/ECB should have insisted that those who failed in Govt are brought to justice. For a start, strip them of they pay offs & pensions & give them the regular state pension. About time this nation stood up & said enough is enough. For what it’s worth folks.
Start by cuting the wages of our TDs and TOP paid public workers.Then target welfare scams and tax thoses earning over 100,000 euro with a super tax.I,like orther people have done our share with new taxs and pay cuts.We cant and wont take any more pain as the goverment keeps saying.The rich are getting richer and joe public is left to rot.What a mess this country is in.
I think you’ll find they have been cut!
what gets to me is at the start of all this mess all we heard was "everyone will have to shoulder the burden", everyone is not shouldering the burden, only the ordinary Joe soap is as usual.
I heard a TD on the radio the other day saying "One of his holidays this year will be in Ireland" and he thought he was a great fella, ONE OF HIS HOLIDAYS??????
I don’t know about anyone else but I can’t afford to go on holidays, so who’s shouldering the burden there!!!!
I suspect you could be right.
Stephan,They havent been cut far enough.
Don’t take anymore tax or levy’s from me and i will take my chances….
I agree, taxes need to be raised, the higher earners tax that is. Bringing it in line with the likes of Germany and Denmark would do absolute wonders for our economy, at LEAST sort out the healthcare sector. I mean, what are we, the Cayman Islands?
Let’s all hail and grovel appropriately to our munificent benefactors.
http://economics.com.au/?p=5849
Denmark & Ireland’s approach in the 80′s.
have your say