IMF Head Praises Irish Fiscal Success

Christine Lagarde, head of the International Monetary Fund, has congratulated Finance Minister Michael Noonan and the government on Ireland's success in meeting its IMF programme.

The IMF head was delivering a speech today at Dublin Castle.

She said Ireland has undertaken over two thirds of the necessary fiscal policies, but said more needed to be done in the banking sector.

Ms Lagarde also congratulated the Irish on its response to the econominc crisis.

"The response to the crisis can be summed up in one word: tenacious," she said.

"I think we can see this Irish determination in three key ways—a sense of ownership, a sense of realism, and a sense of solidarity"

"The size of the bloated banking sector has been reduced, and recapitalisation is well advanced, with €24bn in new funds injected into the banks to help them get back on their feet.

"And here, the burden on taxpayers was limited to €17bn by mobilising private investment and burden sharing with subordinated debt holders."

Ms Lagarde said the government had made "huge strides" in terms of the budget.

"During the most difficult of times, it introduced deficit-reducing measures amounting to 12 percent of GDP, with a further 5 percent of GDP still to go over the next couple of years. This meant taking tough decisions on pay, social services, and taxes. Most recently, the government reached agreement with the public sector union leaders on savings worth a billion euros a year by 2015."

She praised Irish solidarity and said the government had made tough decisions "while maintaining social cohesion, protecting key public services and throwing a life-vest around the most vulnerable.

"I believe this stems from the cherished Irish tradition of social partnership."

(IT)