The Government is postponing further injections of money into AIB, Bank of Ireland and the EBS Building Society until after the election on February 25.
In a statement, the Department of Finance said the decision was taken to allow the election to take place before the necessary injections are made by a newly-elected Government.
Under the EU/IMF programme, the Irish authorities agreed to ensure that the three institutions would meet targets set out by the Central Bank by the end of February.
But Finance Minister Brian Lenihan has told the European Commission, the IMF and the ECB the Government believes this issue should be addressed by the incoming Government.
'Even without further capital injections these banks are adequately capitalised and the short delay poses no regulatory or stability issues,' a statement said.
In a statement, the Central Bank said the deadlines were ultimately the responsibility of the Department of Finance and it expected that the timeline for recapitalisation would be set early in the life of the new Government.
Irish programme on target, says IMF
In its first review of the loan programme for Ireland, the Interational Monetary Fund has said the package agreed late last year is on target, despite what it calls the climate of political uncertainty.
Indicators show a modest export led recovery in the economy, the IMF notes, but says the banking sector remains under stress.
The IMF says 'the fragile political environment' could cause delays in sorting out the banking sector.
The interim report is the first substantial review of the IMF programme on Ireland and is notably cautious on what has been achieved so far. It is based on a visit to Ireland by an IMF team in late January.
Read the full report here
The IMF says that it is postponing its first 'official' review of the loan programme and will combine it with the second, a technical device which allows the organisation to talk to the new government, when it is established after the election.
It is clear from the IMF report that it believes the governmental and budgetary targets of the programme are in hand. But it raises its biggest concern over the bank restructuring, which it says 'would be difficult in the best of circumstances'.
Acknowledging that we are far from that, the report says the banking changes are a 'major operational challenge'.
The IMF says pressure on the banking sector from corporate outflows of funds has moderated. It says retail deposits continue to be relatively stable. During 2010, deposits in Irish banks fell by €15 billion.
The IMF says the public response to the programme 'has remained favourable', but adds that there is 'a lingering domestic perception of inequitable burden sharing'.
