Ireland's gradual recovery continuing, says Troika

Thursday 09 May 2013 21.04
The EU, ECB and IMF -  10th review of the Irish Government's implementation of the bailout programme
The EU, ECB and IMF - 10th review of the Irish Government's implementation of the bailout programme

Ireland's bailout programme remains on track, the gradual recovery is continuing and there have been further improvements in market conditions for the sovereign and the banks.

The Troika made the conclusion in its tenth review of the Government's implementation of the bailout programme.

Staff teams from the European Commission, European Central Bank, and International Monetary Fund visited Dublin between 23 April and 2 May.

The teams noted that the authorities had made significant progress on financial sector repair and restoring sustainability to the public finances.

However, they pointed to remaining challenges that they said require "continuing policy efforts".

The Troika said further progress is required by the banks to resolve unsustainable SME debts, which it said will help bolster job creation.

It called on the authorities to monitor the reduction in mortgage arrears by the banks, a process that it said got off to a disappointingly slow start.

However, it noted that a normalisation of the financial sector is gradually continuing with the smooth phase-out of the Eligible Liabilities Guarantee scheme.

The report calls for strict implementation of budget measures, including in the health sector, in order to meet the deficit ceiling of 7.5% of GDP.

It notes the progress that Ireland has made in recovering lost competitiveness in recent years, which it says should be continued through opening up competition in sheltered sectors such as legal services.

Concluding disposal of State assets can support job-creating investment projects, it says.

The conclusion of the review will see a further €2.5bn of funds disbursed to the Government.

The next review is due to take place in July.

Keywords: troika, bailout