The International Monetary Fund announced that it has released the latest installment of the loan for Ireland, which marks the end of an international rescue package the country started in 2010. The IMF released the last 650 million euros, with which the total amount received in Dublin reaches 21.8 billion within three years. The output of the Irish rescue program is a milestone in efforts to resolve the eurozone debt crisis. Ireland has asked for help from the European Union and the IMF in 2010 to bring public finances under control and managed to meet the terms of the agreement, reducing spending and raising taxes in order to restructure its economy and reduce its budget deficit.
Ireland’s economy is expected to grow by about 2% in 2014, while the unemployment has dropped below 13% and Dublin hopes to manage without line of credit as a security measure against fluctuations markets. Although committed to maintaining budgetary discipline, Noonan said he would consider cutting taxes the next two years to support the economy. If we can make changes that will help the economy to grow better and create more jobs, this is what we will do, he said.
Although the output of the program is a significant accomplishment for the government, the Prime Minister Enda Kenny will have to overcome many obstacles yet to regain the Irish vote in the elections scheduled to be in early 2016. Kenny, who inherited the memorandum when it took office in 2011, is expected to set the tone in the proclamation that he will deliver on Sunday night, after the 15th of December is the day when the country comes officially from the rescue program.
By Nicole P.