- incoming Irish government cannot renegotiate interest rate on IMF portion of loan
- will have to see whether Ireland will need to take additional fiscal measures in 2013,14 and 15
- premature to put number on additional Irish adjustment needed to meet deficit target of 3% GDP by 2015
- says IMF agrees with European position that Ireland cannot impose haircuts on unguaranteed senior bank debt
also
- IMF says contagion threat from Ireland is significant, restoring financial stability would contain that threat
- Political risks in Ireland are considerable
- Ireland’s fiscal outlook might deteriorate opening a larger financing need
- Irish capability to repay loans satisfactory, significant risks could hit capacity to repay
- Irish 4-yr fiscal plan is broadly appropriate, further fiscal measures likely needed
- IMF forecasts Irish Budget Deficit to hit 5.1% GDP by2014, 4.8% by 2015