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IMF's debt warning

THE IMF has warned that European leaders don't have the luxury of time to cope with the worsening debt situation.

The IMF predicts Ireland will hit its budget deficit target in 2012 but warned European politicians need to "get its act together".

The organisation singled out Europe as "a major source of worry" and said policy makers need to deal with its worsening sovereign debt crisis, forecasting a deficit of 8.9pc in 2012.