Allied Irish Banks (AIB)

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Irish Bailout Troika Endorses Progress On Austerity - Minister
7:43a ET July 14, 2011 (Dow Jones)
Irish Bailout Troika Endorses Progress On Austerity - Minister

DUBLIN (Dow Jones)--The troika that arranged last year's bailout for Ireland has endorsed the new Irish government's austerity program, Irish Finance Minister Michael Noonan said Thursday.
Noonan said the troika--the European Union, International Monetary Fund and the European Central Bank--has judged that Ireland has met all its targets--fiscal, banking and structural reform.
Budget Minister Brendan Howlin said Ireland's public finances were showing signs of stabilization after several difficult years.
However, both ministers said they were aware that further difficult decisions have to be made in regards to Ireland's budget for 2012.
The ministers were speaking before the troika was due to deliver its latest verdict in Dublin later Thursday on the EUR67.5 billion bailout deal it struck with Ireland in November.
Amid an escalating banking crisis, Ireland was forced to agree on the bailout deal when markets refused to lend it and the banks more money.
Noonan also said that some of the financial sector reforms--such as the merger of Allied Irish Banks PLC (AIB) and EBS Building Society--had occurred ahead of schedule.
The new Irish government led by Prime Minister Enda Kenny that swept to power in March committed itself austerity package agreed with the troika, aiming to reduce a 10% budget deficit this year to 8.6% of gross domestic product in 2012. To do this, the 2012 budget will need to cut spending and increase taxes by at least EUR3.6 billion.
-By Eamon Quinn and Ainsley Thomson; [phone]; [e-mail]