Ireland may get new bailout tranche as it fulfills economy recovery plan - Troika
Ireland is currently fulfilling its economy recovery plan approved of by its lenders, which gives the country a chance to get another 3.8-billion-euro bailout tranche from the International Monetary Fund (IMF) and a 4.2-billion-euro tranche from the European Union, the troika of international lenders comprising the European Central Bank, the European Commission, and the IMF said on Thursday.
"Program implementation continues to be strong. The authorities have completed the key initial phase of the comprehensive financial sector reforms launched in March. The fiscal deficit limit of 10.5 percent of GDP in 2011 is expected to be met and important structural reforms are being put in place," the troika said in a statement.
Ireland turned to the EU and IMF for help last November, while the 67-billion-euro rescue program was approved of by the end of the year.
The loan cannot be disbursed without a positive resolution of the troika, while experience has shown that a positive report finally results in fund distribution.
The troika's resolution allows the Eurogroup, which is composed of the eurozone finance ministers, and Ecofin, composed of the economics and finance ministers of the European Union, to make a decision whether to grant further bailout tranches or not.