No more time to cut deficit, says IMF

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.

Finance Minister Michael Noonan has said he expects the country to exit the bail-out programme as planned in 2013, but the IMF advised it will not be easy.

The Government needs to take another €3bn out of the economy in December’s budget — and the international lender said it cannot predict the effects of the increased taxes and spending cuts.