After finishing its eighth review of the Irish bailout program, the International Monetary Fund (IMF) has recommended that the country refrain from implementing more austerity measures if growth disappoints next year in order to protect the nascent recovery.

The IMF approved yesterday the disbursement of €890m in financial assistance agreed back in 2010 after Ireland passed the latest review.

IMF first deputy managing director David Lipton said that the Irish authorities have "consistently maintained strong policy implementation" and expects Ireland to "comfortably meet its 8.6% deficit target for 2012." However, he warned that "if next year's growth were to disappoint, any additional fiscal consolidation should be deferred to 2015 to protect the recovery."

JM

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