26 September 2013

IMF completes eleventh review under the EFF arrangement for Ireland and approves €770 million disbursement

The completion of the review enables the disbursement of an amount equivalent to ca. €770 million, bringing total disbursements under the EFF to the equivalent of ca. €21.43 billion. (Includes press release: EFSF disburses €1 billion to Ireland.)

Following the Executive Board’s discussion, Mr. David Lipton, First Deputy Managing Director and Acting Chair, said: “The Irish authorities continue to show strong commitment to the objectives of their EU-IMF supported economic programme. In light of the fragility of the recovery underway and remaining risks to debt sustainability, strong policy implementation and continued European support remain critical for the period ahead.

“Resolving non-performing loans is key to a lasting revival in bank lending, domestic demand, and job creation. Bringing the Insolvency Service into operation, removing unintended legal barriers to repossession, and facilitating banks’ engagement with borrowers have been important steps to enable the resolution of mortgages in arrears. The authorities must be vigilant to ensure this framework functions effectively to accelerate progress on that front. Close supervisory oversight of banks’ efforts is also needed to reach sustainable resolution targets.

“Ireland’s track record of steady fiscal consolidation should be maintained to protect market access on favourable terms. While budget execution remains on track in 2013, narrow buffers make continued careful implementation essential. The budget for 2014 should set out targets for cumulative consolidation in 2014-15 consistent with prior Medium Term Fiscal Statements while allowing full operation of the automatic stabilisers. Averting a rise in structural unemployment requires a further redeployment of resources to facilitate a return to work of the long-term unemployed.”

Press release

See also Transcript of a conference call - IMF, 4.10.13

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The European Financial Stability Facility (EFSF) disbursed today €1 billion to Ireland. The funds were transferred in cash and the loan has a maturity of 21 years (2034). 

With this disbursement, Ireland has now received from the EFSF €15.4 billion out of the total committed amount of €17.7 billion. This assistance programme is due to expire in December 2013.

Press release, 27.9.13

© International Monetary Fund