Written answers

Thursday, 14 July 2011

8:00 pm

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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Question 90: To ask the Minister for Finance if he will provide details on his involvement in the latest quarterly review by the troika of Ireland's financial assistance package; and if he will provide details of the particular elements that were on the agenda for renegotiation. [20519/11]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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Quarterly reviews such as the one which started last week are a standard feature of financial support programmes. The purpose of the reviews is to assess the progress of the programme to date, and in particular to determine if the targets for the relevant quarter had been met. It also considered progress on targets which are due in subsequent quarters, to ensure sufficient progress is being made. The review process includes a mission by the EU, ECB and IMF staff to Ireland and the preparation of reports on their findings. The disbursement of further funds is conditional on positive assessments of compliance and approval by the Eurogroup, the ECOFIN Council and the IMF Executive Board as appropriate.

The mission element of the third quarterly review of the EU/IMF Programme of Financial Support for Ireland started last week on the 6th of July and concludes today - the 14th of July 2011. The remainder of the review – the assessment and approval of our performance by the Eurogroup, the ECOFIN Council and the IMF Executive Board is expected to be completed by end August or early September this year.

I met with the Troika delegation during the current mission. The mission comprised a series of meetings to evaluate all the elements of the programme including fiscal developments, the macro-economic outlook, progress on commitments in the restructuring of the financial sector and structural reform. The meetings ranged from technical to policy discussions and were conducted, under my direction and that of the Minister of Public Expenditure and Reform and the Governor of the Central Bank as appropriate, by senior officials from my Department, the Department of Public Expenditure and Reform, the Central Bank and the Financial Regulator, the National Treasury Management Agency and the Office of the Attorney General.

The Government has repeatedly stated its commitment to the Programme targets. Meeting these conditions on time and on target, is the best way to ensure that we emerge successfully from this programme. That will mean that we can return safely to the financial markets for funding in as timely a manner as possible. This is one of the principal objectives of the programme. The Government's commitment to the Programme does not stop us from seeking and agreeing changes to aspects of the programme. We have already done this successfully. The Government will continue to do so at the appropriate time.

For the third review, the primary focus is on our performance against the targets due by the end of the second quarter of 2011 and assessing progress on targets due in subsequent quarters. I have already signalled that notwithstanding the substantial consolidation already carried out, in particular the amount being delivered by this government this year, difficult decisions in relation to future consolidations remain. There is no doubt that Budget 2012 will be another difficult Budget that will require an adjustment of a minimum of the €3.6bn already indicated. Final decisions in relation to Budget 2012 will be made by the Government in due course in the light of the latest relevant information available at that time.

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