Troika officials are due to meet officials from the Department of Finance and the Central Bank over the coming days as part of the third post-bailout programme review of the Irish economy.
Representatives from Ireland's three main lenders during its bailout – the European Commission, European Central Bank and the International Monetary Fund – arrived in Dublin on Monday as part of a week-long mission to assess Ireland's adherence to its commitments under its bailout programme, which ended in December 2013.
Under the terms of Ireland’s bailout, officials will undertake two post-programme surveillance missions each year until 75 per cent of Ireland’s bailout loans are repaid.
Officials are expected to complete their mission by Thursday. As it stands, representatives of the troika are not scheduled to meet Minister for Finance Michael Noonan, although an informal meeting is possible.
Fiscal consolidation
“The mission will take stock of Ireland’s fiscal consolidation and financial repair, as sustained financing conditions are essential for the full recovery of the Irish economy,” a spokeswoman for the commission told
The Irish Times
.
“To this end, programme partners’ staff are discussing with the Irish authorities the latest developments in the financial sector, the fiscal and macroeconomic outlook and progress on the structural reforms agreed under the programme.”
Government officials played down the significance of the timing of the visit on the week the government unveiled its inaugural spring economic statement. “The representatives of the troika are completing a post-programme surveillance visit which is part of the post-bailout process. In terms of assessment, the only issue is Ireland’s ability to repay its loans. This is unquestionable,” a Department of Finance spokesman said.
In addition to the three main lenders, a representative of the European Stability Mechanism (ESM) is also participating in the mission. ESM director Klaus Regling has consistently argued that the ESM – which manages the euro area's bailout fund – has an obligation to ensure its members are fully repaid.
The ESM manages the eurogroup’s loans that were offered to Ireland and other bailout countries during the financial crisis.
The Government successfully secured a commitment by the commission to reassess the formulae used to calculate Ireland’s growth projections, in advance of this week’s spring statement.
Mr Noonan raised the issue at a March 9th eurogroup meeting in Brussels at which ministers agreed to grant France, Italy and Belgium greater leeway on reaching budget targets.
Mr Noonan is understood to have been supported in his call for flexibility for all member states by a number of smaller EU member states, including Portugal.
