By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Christine Lagarde, Managing Director (MD) of the International Monetary Fund (IMF) Friday in Dublin said economic activities in Ireland are still weak; but said the IMF expects Ireland’s growth to exceed that of most European Union (EU) countries in 2013.
This is coming on the heels of the conclusion of her visit to the country.
“I congratulated the authorities for the high ownership and steadfast implementation of their program supported by the EU and IMF, which is helping restore the basis for economic recovery. Economic activity in Ireland is still weak, but we expect Ireland’s growth to exceed that of most EU countries in 2013 and the recovery to gradually gain momentum†Lagarde said.
According to her, the authorities have made intensive efforts to repair Ireland’s financial sector. “Banks’ capital and liquidity improved and deposits have been returning in the past year. But there is still much work to be done. The priority is now for banks to make substantial progress with working out durable solutions with borrowers in distress’ she said.
She however, lamented the high unemployment rate in the country at 14.6 percent (14.6%). “The authorities and I discussed how to foster job creation, including by accelerating investment projects, such as those funded by the European Investment Bank, National Pension Reserve Fund and private investors. We discussed how to help job seekers facing long‑term unemployment to stay in the work force†the IMF Chief said.
Lagarde said the recent steps to replace the promissory notes are welcome as they significantly reduce Ireland’s need for market funding in the next decade. “Fund staff will continue to engage with the authorities and European partners on how to further improve the sustainability of Ireland’s program to best ensure Ireland’s durable return to reliance on market funding†she said.
