IMF urges Govt to sell off €5bn in State assets

The International Monetary Fund has cut Ireland's growth prospects due to the worsening global economic outlook.

In its latest report on the country the IMF said Ireland is "making very good progress" on implementing the austerity as part of the deal.

But it is urging the Government to more than double the amount of State assets to sell off.

This IMF staff report said the country is on track to meet its fiscal goals this year and is ahead of schedule in restructuring the banks, but the report cut its growth outlook for the country for this year and next due to the risk of weaker export growth.

The report is also urging the Government to rethink the plan on a sell off of €2bn in State assets and raise up to €5bn instead.

The Government has to go back to the IMF now to renegotiate more of the bailout deal, because the previous Government agreed to raise €250m from income tax for the next three years.

Taoiseach Enda Kenny has said the Coalition will not increase income tax rates or bands, but will have to raise the money elsewhere.

Earlier when asked how painful the next budget will be, FInance Minister Michael Noonan declared it will be about two thirds as painful as this year's.