Ireland: Fourth Review Under the Extended Arrangement and Request for Rephasing of the Arrangement: Staff Report; Letter of Intent; Memorandum of Economic and Financial Policies; Technical Memorandum of Understanding; Letter of Intent and Memorandum of Understanding on Specific Economic Policy Conditionality (College of Commissioners); Staff Supplement; Press Release on the Executive Board Discussion
IMF Staff Country Reports, December 20, 2011
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- Ireland: Fourth Review Under the Extended Arrangement and Request for Rephasing of the Arrangement: Staff Report; Letter of Intent; Memorandum of Economic and Financial Policies; Technical Memorandum of Understanding; Letter of Intent and Memorandum of Understanding on Specific Economic Policy Conditionality (College of Commissioners); Staff Supplement; Press Release on the Executive Board Discussion
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Bibliographic details
- Published: December 20, 2011
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781463929893.002
Key findings and summary conclusions
- The Irish authorities are adopting consolidation measures to meet the original fiscal targets.
- The authorities are implementing structural reforms in the labor market and sheltered sectors to enhance competitiveness.
- Strengthened euro area support for Ireland’s growth and debt sustainability would greatly reinforce prospects for Ireland to regain market access at an early stage given more adverse circumstances.
- Reports suggest that investors are differentiating Ireland based on its policy implementation track record and growth prospects.
- Vulnerabilities persist, as international demand for Irish bonds is sensitive to developments in the euro area.
Policy measures and recommendations
- Adopt and implement fiscal consolidation measures to meet the original fiscal targets.
- Implement structural reforms targeting the labor market and sheltered sectors to enhance competitiveness.
- Seek strengthened euro area support to reinforce growth and debt sustainability under adverse scenarios.
- Maintain policy implementation credibility to influence investor differentiation favorably.
Risks, vulnerabilities, and market considerations
- International investor demand for Irish bonds remains sensitive to euro area developments.
- Ireland’s prospects to regain market access depend importantly on policy implementation and external support.
- Differentiation by investors is influenced by Ireland’s policy track record and growth prospects.