Ireland's Economic Recovery On Track - IMF

Ireland’s economic recovery program implementation continues to be strong, said the IMF, ECB and EC in a joint statement. Fiscal targets for 2011 were met with a healthy margin and the consolidation remained on track in the first quarter of 2012.

The authorities have also pressed ahead with comprehensive reforms to restore the health of the Irish financial sector. Market confidence in Ireland’s policies has improved, contributing to some stabilization in Irish bond spreads, although they remain elevated, according to the statement.

Nonetheless, economic growth is expected to remain modest in 2012, at around ½ percent. The benefits of continued competitiveness gains are limited by a decline in domestic demand and difficulties faced by the banking sector in getting funding. Fiscal consolidation efforts remain on track in 2012, said the IMF.

The 2011 general government deficit (excluding bank support costs) is now estimated at 9.4 percent of GDP, well within the programme ceiling of 10.6 percent.

The budget is on track for achieving the 2012 deficit ceiling of 8.6 percent of GDP, said the IMF.

Efforts to strengthen the quality of Ireland's bank assets are intensifying through strategies for dealing with mortgage and SME loan arrears. The personal insolvency reform will further facilitate the resolution of unsustainable debts, where the authorities are taking care to balance the rights of debtors and creditors and uphold Ireland’s tradition of debt servicing discipline, according to the report.

Message from CyprusNewsReport.com.  We can't do it without your help. Please support our independence so we can keep bringing you high-quality, free news from Cyprus and the region.

To make and read comments, become a full member of your news community, click here.