Brussels, 23/04/2013 (Agence Europe) - As expected, Ireland has sailed through the recent fact-finding mission by its international lenders. Their positive assessment now paves the way for the payment of a new batch of aid, worth €1.6 billion, by the European Financial Stability Fund (EFSF).
Ireland reduced its budget deficit to 7.6% of GDP in 2012 and will easily be able to achieve its 2013 objective of 7.5%. The troika of lenders (European Commission, ECB and IMF) say that restructuring the debt through liquidation agreements with IBRC and the longer loan repayment deadlines will substantially reduce financing needs as it leaves the aid programme at the end of this year (see EUROPE 10827). Despite opposition from the public, the introduction of a local property tax will soon be complete.
Ireland's lenders say a number of risks remain. “Progress in resolving non-performing loans has been slow, and banks need to step up their efforts to find durable solutions for borrowers with unsustainable mortgage debts”, and Dublin is asked to reduce spending on healthcare and public service pay. Unemployment has levelled out at 15% but needs to be tackled resolutely, adds the troika. (MB/transl.fl)