The European Commission has authorised the release of another €3 billion of funds to Ireland as part of its bail-out programme.
The European Commission, after completing its quarterly review of the financial assistance programme for Ireland, said the programme is on track, while challenges still remain.
It said that agreed fiscal targets for last year were met, and the economic data so far this year suggests that the 2011 GDP deficit target of 10.6% is 'within reach'. It also said that important progress was made in reforming the country's banking system.
In its report, the Commission praised the Government for its commitment to the programme objectives and the progress made so far.
However, it also pointed out that continued strict programme implementation must be continued, including planned reforms to the country's fiscal framework.
It said this is key 'to assuage lingering concerns on Ireland's debt dynamics, as reflected by still elevated spreads on Irish Government bonds in on the secondary market'.
The overall EU financial assistance to Ireland amounts to €45 billion over three years - this includes bilateral loans from the UK, Sweden and Denmark. The country has received a total of €12 billion of this money so far.
Ireland's bailout interest rate 'illogical' - OECD chief
Meanwhile, the secretary general of the Organisation for Economic Co-operation and Development said that a higher interest rate on Ireland's bailout was illogical and he rejected the notion that Ireland should increase its corporation tax rate.
Angel Gurria said in Brussels that it was illogical for Ireland to pay a higher interest rate on the bailout since this would make the economic situation worse, and he rejected the idea of a quid pro quo on Ireland's corporate tax in exchange for a lower interest rate.
