Honohan: IMF would likely advocate same course

Central Bank Governor Patrick Honohan has said that the Government's budgetary plan is very much the sort of policy package the International Monetary Fund would try to impose in Ireland.

Speaking at an International Financial Services Summit in Dublin, Mr Honohan said the IMF has proven to be an indispensable tool for stabilising countries who go off the rails- but it is not a panacea.

He also said the proposal to make savings of €15bn over the next four years seems to be exactly right for getting the public finances back on track.

The Governor said the IMF - if called in - would be unlikely to make changes to the policies being pursued by the Government.

"The sort of policy package that the IMF would want to see Ireland doing is very much the sort of policy package that the Government is putting together on the fiscal side and… on the banking side," Mr Honohan said.

"I doubt if the IMF would be interested in advocating a shift in policy, relative to what is being proposed."