The adjustment program of Ireland remains on track, according to the IMF, ECB and EC
The implementation of economic adjustment program of Ireland is “on track despite problems macroeconomic conditions,” they said in a statement today the International Monetary Fund, the European Commission and European Central Bank.
Technicians of the three institutions visited Dublin in the past day 3 and today for the seventh review of the program must apply the Dublin government.
“According to the conclusions of the statement in the euro area summit on 29 June, technicians IMF / ECB / EC discussed with the authorities (Irish) possible solutions to improve the sustainability of its adjustment program implemented well , “the statement said.
Also, he adds, “repair in place of the domestic balance sheet (in reference to banks) and the weakness persists in the labor market hinder the growth of domestic demand” in Ireland.
“The growth prospects for the remainder of 2012 and for 2013 remain modest while the weak growth in trading partners (Ireland) limited export demand despite advances in competitiveness,” he adds.
According to the institutions that designed the adjustment program for Ireland “the recent sharp fall in bond yields underlines the growing confidence in the strong ability of Ireland to implement the policies of adjustment and also reflects the recent declaration of the summit euro area. ”
The statement says that the Irish authorities are “making progress in reforms to restore financial sector health, so that it can contribute to economic recovery.”
The reduction “of the balance sheets of banks has progressed well (and) has been presented to Parliament a draft law Personal Insolvency designed to help address the financial difficulties of borrowers, while maintaining discipline debt service, “continued the statement.
According to the IMF / ECB / EC Ireland has achieved the fiscal targets set for the first half of 2012 and this strengthens the perception that the country is consistently complying with the objectives of the adjustment program.
The country aims to “the goal of maintaining in 2012 the fiscal deficit within 8.6% of GDP.”
“Despite the weakening of the external environment and high unemployment the firm raising efforts (tax) revenues have improved,” added the institutions.
“However, Ireland’s budget deficit remains the highest in the euro area, and is essential for the authorities to maintain prudent control of expenditure, including health care,” the statement said.
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