Troika back to review progress on bailout deal

Officials from the EU, the IMF and the ECB return to Ireland today to review Ireland's progress on implementing the bailout deal.

They will examine last month's Budget and whether it can deliver the growth and taxes promised for this year, after lower-than-expected tax returns for 2011.

The review comes as an economist with one of the world's biggest banks urged Ireland to start negotiations on a second bailout deal.

Citigroup chief economist Willem Buiter said the Government should have a second bailout on standby in case it is unable to access the bond markets this year.

He encouraged the Government to continue borrowing from the troika at a rate of 3% instead of returning to the bond markets to borrow at 8%.

Speaking at the Citigroup annual global research day in Dublin, Mr Buiter also said Ireland needed to renegotiate the debt associated with Anglo's recapitalisation.

Every three months, the Government must satisfy a series of conditions in order to get the next tranche of funding from the EU, the ECB and the IMF.