Monday 18 December 2017

IMF distances itself from Mody anti-austerity comments

Ashoka Mody
Ashoka Mody
Colm Kelpie

Colm Kelpie

THE International Monetary Fund has distanced itself from comments made by its former Ireland mission chief that austerity was self defeating.

THE International Monetary Fund has distanced itself from comments made by its former Ireland mission chief that austerity was self defeating.

Ashoka Mody said over the weekend that the Government should consider suspending or at least lowering its planned cuts for October’s budget.

He said the €3.1bn adjustment should be considerably lowered.

But the IMF said there was no evidence that the Government’s economic plan had been self defeating.

“Ireland's program, supported by the EU-IMF, has steadily reduced the fiscal deficit from unsustainably high levels through a consolidation effort that is phased over five years,” the Fund said in a statement.

“There has been an unavoidable drag on Ireland's growth, but other factors have also weighed on growth, including the notably worse external environment and the efforts of the private sector to reduce its high debts.”

It pointed out that the reduction in borrowing costs and the steps that Ireland have taken to fund itself on the markets so far highlighted the credibility of the programme.

And it said that Mr Mody’s views do not represent those of the Washington-based lender.

Mr Mody told RTE Radio’s This Week programme yesterday that moving away from austerity at this point was a sensible course of action.

Online Editors

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business