22nd November 2010
Embassy Press Release
Yesterday, 21 November 2010, the Government of Ireland announced
that it has agreed to request financial support from the European
Union and the Euro Area Member States. The IMF will also be
requested to assist in the provision of support.
A meeting of the Eurogroup held on the same day decided that
providing assistance to Ireland was warranted to safeguard
financial stability in the EU and in the Euro Area.
Negotiations with the EU and IMF will determine the design, size
and terms of the support facility provided and these negotiations
will be conducted relatively quickly. The programme will address
the budgetary challenges of the Irish economy in a decisive manner
on the basis of the ambitious budgetary adjustment and
comprehensive structural reforms that will be contained in the
Government’s Four Year Budgetary Strategy.
A central element of the programme will be to support further deep
restructuring and the restoration of the long-term viability and
financial health of the Irish banking system. It will build
on the extensive measures taken by Ireland to strengthen its
banking sector, via guarantees, recapitalisation and asset
segregation. These measures have helped to maintain financial
stability of the Irish banking sector at a time when both the
banking system and the Irish economy have confronted significant
challenges reflecting both domestic and international factors.
The programme will also address the potential future capital needs
of the banking sector. By building on the measures already taken by
Ireland to address stress in its banking sector, a comprehensive
range of measures – including deleveraging and restructuring of the
banking sector - will contribute to ensuring that the banking
system performs its role in the functioning of the economy.
Despite the difficulties in the banking sector and the necessary
fiscal adjustments, Ireland’s economy is on the road to recovery.
In 2010 exports will grow by more than 6% and total industrial
production at the end of September was up 12% year on year. Given
the underlying strengths of the Irish economy, decisive
implementation of the programme is expected to allow a return to a
robust and sustainable growth, safeguarding the economic and social
position of the people of Ireland.