Brussels, 13/05/2013 (Agence Europe) - Following their 10th review mission, the representatives of the creditors of Ireland take the view that the Irish programme is still on track, even though certain challenges, such as unemployment, remain. This assessment paves the way for the disbursement of a tranche of €2.5 billion (€1 billion from the EFSF, €1 billion from the IMF and €0.5 billion in bilateral loans).
With growth forecast at 1% in 2013, the Irish economy is continuing its recovery. Following an initial release of 10-year benchmark bonds, the interest rates laid down for these bonds have stabilised at around the 3.5% mark. This situation bodes well for ending the programme in late 2013, a timescale which was discussed during the mission of the “troika” (European Commission, ECB, IMF). However, the troika stresses the importance of sticking to the budgetary objectives (deficit of 7.5% of GDP in 2013), particularly by getting on top of expenditure in the healthcare sector. The normalisation of the financial sector continues. After a slow start, the process of reducing payment arrears related to the burst of the real estate bubble has taken off. Progress remains necessary in order to resolve the question of unsustainable SME debt.
The creditors stressed the importance of structural measures to bring down unemployment: redeployment of case workers, training, opening sectors such as legal services up to competition and financial support to job-creating investment projects. (MB/transl.fl)