Ireland’s debt burden could climb to unsustainable levels if economic growth fails to materialise over the next few years and the banks need to be recapitalised, according to the IMF in its latest review of the economy.

Ireland got a stark message from the IMF when it warned that the country cannot get extra time to cut its budget overrun and must get €24bn for its banks from the EU to avoid a second bailout.

Ireland received its latest report card from the IMF this week and the message continues to be that the student is doing well but has much more work to do to become an honours student.