Ireland ‘on track’ to meet terms of bailout

After a two-week review, the Government has been given the green light to reinstate cuts to the minimum wage, taking the rate back to 8.65 euro (£7.66).

Finance minister Michael Noonan said the IMF-European team were happy with the country’s progress.

“In terms of renegotiating the programme, we have done what we set out to do,” he said.

A revised memorandum of understanding agreed with the IMF, the European Commission and the European Central Bank (ECB) will be formally signed off on May 15 and 16.

Mr Noonan said the IMF was “very complimentary” on decisive actions the Government has taken to finalise the bill for rescuing banks – 70 billion euro (£61bn).

“The negotiators have to revert back to their principals so the final signing off will be May 15-16,” he said.

The minister said the IMF, Commission and ECB agreed that Ireland is fully in line with the bail-out programme at the end of the first quarter. “That is very satisfactory from our point of view,” Mr Noonan said.

Meanwhile, Taoiseach Enda Kenny said Government actions on the banks, employment and spending would help provide the confidence needed for recovery.

“The engine of our economic recovery has not been working the way that it should,” he said.

“And the reason that the Government is now taking action across a range of areas is actually to get that engine working before you can give the fuel of confidence for people to get through this frustrating period of austerity and economic difficulties.”

In a statement, the IMF said: “Ireland is making good progress in overcoming the worst economic crisis in its recent history.

“The new Government, through its Programme for Government and its decisive approach to banking sector reforms, has taken full ownership of the goals and key elements of the EU/IMF-supported programme.”

The IMF said the bank reform plan announced on March 31 is a major step to bringing the sector back to health. The Government will also remove competition restrictions in the legal, medical and pharmacy professions to further reduce costs.

The IMF will return to Dublin to check progress in July.