Brussels, 18/05/2011 (Agence Europe) - Ireland's international creditors say that implementation of the Irish economic adjustment programme is on track and therefore the country can be granted a further three billion euros of aid, in addition to the additional twelve billion already granted, announced the European Commission on Wednesday 18 May 2011 in a report on the fact-finding mission in Ireland last month by the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF).
The European Commission, ECB and IMF say that Ireland achieved its budget target for 2010 (-32.4%), the forecasts for 2011 are below the upper limits set out in the austerity programme. Even in a worst case scenario, Ireland's debt is sustainable if the austerity programme is strictly applied, notes the report. The Commission says Ireland's public deficit and debt will reach 10.5% and 112% of GDP respectively. Ireland's creditors welcome significant progress in cleaning up the country's financial industry. The announcement by Bank of Ireland that Irish banks would need an additional bailout of 25 billion euros has been welcomed by the markets The Commission says that following the results of the stress tests, Irish banks would now be recapitalised, restructured and de-leveraged. The Commission, ECB and IMF take note of structural reforms under way in Ireland to change collective bargaining agreements on pay and the unemployment benefit system. (M.B./transl.fl)