IMF: Ireland making good progress on reforms

IRELAND has made good progress on its programme of reforms and budget cutbacks, according to IMF director Marek Belka.

The IMF is due visit Dublin later this month to consult with politicians, as well as representatives of the banking sector, civil service and trade unions, before drawing up an economic report on the country.

While the meeting is an annual one, Mr Belka, the European director of the IMF, said this time it will be interesting “because we will be discussing the progress made in implementing a programme of adjustment”.

He said: “We are very glad with the progress achieved so far. The programme is going... very well.”

He would not be drawn on whether further measures requiring another budget would be needed, other than to say that every country needed to do more.

Commenting on the European stability fund of €500 billion, to which the IMF have pledged an additional €250bn, he said there was further aid available from the New York-based organisation. “There is more IMF fund aid there as needed, and this will be considered on a country by country basis. “We are there to help. We have means to help,” he added.

He described the €500bn fund as a formidable package, especially when it was put together with the ECB’s move on security market options. To an extent, he said, the monetary figures were notional and what was important was that the entire package put a floor under the crisis and allowed countries to concentrate on the longer term underlying issues of fiscal problems, sustainability and competitiveness.