IMF on Ireland - No-nonsense warning is a reality check

It may be tempting fate to put an Irish context on the Cyprus experience but in the wake of yesterday’s no-nonsense warning from the IMF on the state of this country’s finances, that grim spectre can no longer be ignored.

In a darker assessment of Ireland’s economic situation delivered in a long time, the IMF’s warning will strike fear into the hearts of families struggling to make ends meet. Essentially, the blunt message is that repossession of the homes of people in mortgage arrears will now have to be accelerated as an integral part of the ultimate solution to Ireland’s deep financial problems.

In an ominous comparison with the mortgage situation in Britain and the US, where repossessions are running at about 3.25%, it points out that in contrast, repossessions here have been unusually low, estimating the toll at a mere 0.3% of the country’s total mortgage arrears in 2012. Effectively, despite the Taoiseach’s assurances that mandatory penalties would not come into play, the IMF has reloaded the gun with live ammunition for the Government to fire.