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IMF delays Irish loan approval for debate

Friday 10 December 2010 - by Nicola York

Leinster House seat of the Irish Parliament, Dublin

The International Monetary Fund announced on Friday afternoon that it was postponing its consideration of the proposed loan for Ireland until after the package has received parliamentary support.

Yesterday the Irish Government decided to table a motion on the EU-IMF bail out in the Irish Parliament and this is scheduled for Wednesday 15 December.

Parliamentary approval of the package is not legally required but the Government is trying to strengthen political support for the agreement after facing a backlash from opposition parties in recent weeks over the state of the economy and the banking system.

If there is Parliamentary support for the package, the IMF's managing director could recommend approval by the IMF Executive Board of the proposed €22.5bn IMF loan as early as December 16.



An IMF spokesperson says: "The authorities have informed us that while parliamentary approval of the EU-IMF support package is not legally required, the Irish Government has put the motion before parliament to strengthen political support for the agreement. In deference to Ireland's parliamentary process, the IMF has decided to postpone consideration by its Board of the proposed loan under the Extended Fund Facility until after the debate.


"We welcome the first implementation measures of the 2011 budget - stipulating the fiscal consolidation path and important reform measures involved in the program - have recently been passed by the Irish Parliament, confirming Ireland's strong commitment to the program and the policies involved."


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