Ireland's bailout programme is on track and the Government is meeting all the goals set out in the programme, according to the International Monetary Fund.

However the sustainability of the programme in the medium and long terms is dependent on the European Union coming up with comprehensive package to deal with countries in trouble.

Ajai Chopra, the head of the Ireland team at the IMF, said the problems facing Ireland are not just an Irish problem, but a shared European problem.

He urged the European Central Bank to put in place medium-term financing mechanism for the Irish banks, as a means to ensure confidence.

Mr Chopra also rejected any further belt-tightening than that already envisaged in the programme.

He said accelerating the pace of adjustment is not the answer.
Mr Chopra said for the whole package of measures to work, Ireland needs to deliver on its commitments, but Europe must also make it clear that it will respond with the right amount of financing, with the right terms at the right time.

Mr Chopra's comments may well be seen as a stinging rebuke to European countries, which have spent the last months arguing among each other about the problems of Ireland, Greece and Portugal.

Ratings agency Fitch has joined the IMF in putting pressure on the EU to forge a more comprehenisve deal for the Eurozone debt crisis when it downgraded its ratings for Greece.

The agency moved Greece from BB+ to B+, which means going from specultative grade to highly speculative grade.

In a note Fitch said 'In the absence of a fully funded and credible EU-IMF programme, the rating would likely fall into the 'CCC' category indicating that a Greek sovereign debt default was highly likely'.

Greek ten-year bond yields went as high as 16.6% today, while the yield on two yearbonds was 24.8%.