IMF talks aim to provide Ireland with precautionary facilities
Talks have begun to provide precautionary facilities should Ireland fail to exit the bailout plan later this year, the International Monetary Fund (IMF) said today.
The IMF is demanding €3.1bn in tax hikes and spending cuts next year, saying staff would not support easing austerity by using any benefits from the promissory note deal.
It also warned that a sell-off of the assets of the Irish Bank Resolution Corporation (IBRC) could result in a compensation to Nama that the taxpayer would have to cover.
The group warned that the Government and banks need to deal with the mortgage arrears crisis, which it described as a drag on growth.
It predicted that the Irish economy will grow by 1% this year and 2% in 2014.
Discussions on a bailout exit continued, including what it called a "backstop" arrangement with the European Stability Mechanism, which would also require seeking support from the IMF if Ireland cannot exit the bailout and return to the markets as planned later this year.
