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EU, IMF hear new Government's views

Ajay Chopra - Back in Dublin to meet new Government
Ajay Chopra - Back in Dublin to meet new Government

Finance Minister Michael Noonan and the Minister for Public Expenditure and Reform, Brendan Howlin, held a series of meetings with EU and IMF officials today.

This morning the ministers met Jurgen Stark, chief economist and executive board member of the European Central Bank.

This afternoon they met Ajai Chopra of the International Monetary Fund and Istvan Szekely of the European Commission.

The meetings are described as 'get to know you' sessions ahead of formal review talks on Ireland's EU-IMF funding deal which are due to take place next month.

A joint statement from the IMF, European Commission and ECB said the talks covered the economic outlook and the financial sector, and were 'an important input' into next month's review mission of the EC, ECB and IMF. The statement described the meetings as an opportunity to hear the new government's views on its economic programme.

Speaking earlier, the Minister for Public Expenditure and Reform said he and Mr Noonan would discuss with the IMF today how it wanted to proceed with the renegotiation of the EU/IMF deal.

Brendan Howlin said it was not a matter of a 'hard or soft' engagement with Ajay Chopra and others, but rather a partnership which he said would lead to success. Minister Howlin said the Government would engage here and internationally to 'push out the boundaries for Ireland'.

He said people needed to understand the pressure Ireland was under, adding that it was in everyone's interest that Ireland succeeded. The decision to allow that happen must be made, he said.

Kenny says Fed loans are an issue for Central Bank

Meanwhile, Taoiseach Enda Kenny has again raised the possibility of Ireland's Central Bank borrowing money from the US Federal Reserve.

The issue was first raised during the election campaign by Michael Noonan, who said other countries with assets in American banks were able to borrow from the Federal Reserve on the strength of those assets.

Asked if he would raise this issue when he meets US Treasury Secretary Timothy Geithner in Washington this evening, Mr Kenny indicated it was a matter for the Central Bank to pursue.

Government sources said there was no role for political involvement in discussions between the Central Bank and the Federal Reserve, but that the issue may be mentioned in this evening's discussions.

Mr Kenny said he would use his meeting with Mr Geithner to discuss the 'bigger issues', to open a new connection and build on that.