The International Monetary Fund disbursed a fresh US$1.17 billion (890 million euros) to Ireland, approving the country’s progress under its two-year-old rescue program.
The IMF said that Ireland had pushed ahead with policy reforms and deficit cutting despite a slowdown in growth this year.
it said it expected the country’s fiscal deficit to fall under the 8.6 per cent of GDP target despite pressure to raise social welfare spending due to high joblessness.
The government’s recently submitted 2013 budget aims to reduce that further to 7.5 per cent.
“The program with Ireland has now been in place for two years and the Irish authorities have consistently maintained strong policy implementation,” said IMF First Deputy Managing Director David Lipton.
“All program targets have been met and a range of fiscal, financial, and structural reforms are in train,” he said.
“The authorities have demonstrated their commitment to put Ireland’s fiscal position on a sound footing, with the 2012 deficit target expected to be met even through growth has been low.”