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Economy Improving Despite European Crisis
The reliance of Irish banks on ECB funding continues to fall according to recent figures released by the Central Bank. The total amount of official lending to Irish commercial banks now stands at EUR125.9bn, down from EUR128bn in April of this year. This continues the steady reduction from EUR130bn of bank debt since March. Taxand Ireland discusses the positive impact that strict austerity measures, and a continuing commitment to maintaining a low corporation tax rate, is having on the Irish economy.
These figures reflect the report issued by the IMF on its sixth review of Ireland's bailout programme, which was conducted in mid April. It stated that Ireland's implementation of the conditions of the bailout programme has been strong despite the considerable challenges facing the country, while also offering praise for some of the financial sector reforms that have been put in place.
Tax revenue continues to increase with spending levels decreasing, thereby closing the Irish budget deficit. The IMF has agreed to the Irish Government proposal that some of the money raised from any sale of state assets could be used to bolster economic growth, such as using the funds generated to create new job opportunities within Ireland.
Ireland continues along the path to economic recovery and these reports from the Central Bank and the IMF show the continued progress being made by Ireland. This can be attributed to the implementation of strict austerity measures and a continuing commitment to maintaining its low corporation tax rate.
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