## Press Release: Joint Statement on Ireland by EU Commissioner Olli Rehn and IMF Managing Director Dominique Strauss-Kahn

_IMF News, November 28, 2010_

## Source details

**Canonical URL:** [Press Release: Joint Statement on Ireland by EU Commissioner Olli Rehn and IMF Managing Director Dominique Strauss-Kahn](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr10461)

## Other formats

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## Bibliographic details
- Published: November 28, 2010

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### Overall assessment and support
- “We strongly support the economic program announced today by Ireland.”
- The program is characterized as “a forceful response to vulnerabilities in the banking system imposing a heavy cost on the budget and, in turn, hurting the prospects for growth.”
- It “articulates a clear strategy for tackling today’s problems and for harnessing the enormous growth potential of this open and dynamic economy.”

### Banking-sector measures
- Objective: “create a smaller banking sector that is robust and well capitalized, and able to serve the needs of Ireland’s economy.”
- Key elements described:
  - Reorganize the banking sector while deleveraging the banks.
  - Inject fresh capital into the banks.
  - Strengthen regulation and supervision “to prevent a repeat of the costly mistakes of the past.”
- Result sought: “a smaller banking sector that is robust and well capitalized.”

### Fiscal framework and social protection
- The program provides “a road map for sound public finances by setting strong, upfront actions in a multi-year framework.”
- Fiscal stance: spells out both spending and revenue efforts over several years “to repair the budget position, with due regard for Ireland's system of strong social protection.”

### Implementation and expected outcomes
- Implementation requirement: “Swift and sustained implementation of this program” and “carrying out this plan calls for a sustained effort by the government and people of Ireland.”
- Expected outcome: “stable, job-creating growth.”

### International financing package and buffers
- International support: “The EC and bilateral lenders—together with the international community through the IMF—will offer financing that will be complemented by the Irish authorities so as to amount to €85 billion.”
- Purpose: “By shielding Ireland from the need to go to the markets for a considerable period of time, this support places financing at Ireland's disposal on more favorable terms than it could obtain elsewhere for the foreseeable future.”
- Banking funding assurance: includes “the buffer of €17.5 billion from the nation’s cash reserves and other liquid assets.”

*Press Release: Joint Statement on Ireland by EU Commissioner Olli Rehn and IMF Managing Director Dominique Strauss-Kahn; November 28, 2010.*

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## References

- [Ireland and the IMF](http://www.imf.org/external/country/IRL/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr10461_