Joanna Tuffy (Dublin Mid West, Labour)
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Question 76: To ask the Tánaiste and Minister for Finance his views on the latest warning by the IMF that Ireland is one of the most vulnerable countries to the ongoing international banking crisis and credit crunch; and if he will make a statement on the matter. [29596/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The most recent assessment of the financial markets was reflected in the Central Bank and Financial Services Authority of Ireland's Financial Stability Report published last week. The Report states that, when assessed by the usual indicators of financial health such as asset quality, profitability, solvency, liquidity and credit ratings, the stability and health of the Irish banking system remains robust. The Bank's central expectation is that the Irish banking system is well placed to withstand pressures from possible economic and sectoral developments in the short to medium term. The Bank's Report notes that the strength of the Irish economy continues to support the stability of the financial system.

In terms of output, the Deputy will note that forecasts for the Irish economy show that progress achieved in recent years is being consolidated. In the Pre-Budget Outlook, average GDP growth for the period 2008 to 2010 of 31⁄2 per cent was forecast by my Department. Although we are in a period of uncertainty, with growth in the short term set to moderate below that of recent years, the aggregate growth rate will still remain favourable in international terms.