The Ireland’s government was one of the first to adopt the decision to abstain from the bailout provided by the International Monetary Fund (IMF). The officials have proved their intentions to to withdraw from participation in the program of financial assistance from the European Union and the International Monetary Fund even in December this year. If the decision is not overruled, Ireland will be the first country hurt by the crisis which refused financial aid provided by the EU and the IMF. Moreover, the Department of Finance said the government's assessment was that leaving the €85 bln bailout without a so-called backstop of credit was the best option. Such a mechanism is additional protection measures which could be applied in case of repeated problems of the financial sector, i.e. deficit of funds on the private markets and to ensure national lending. Finance minister underlined that the country had built up more than €20 bln in cash reserves since returning to the international money markets last year. Government financing and expenditure budget are strictly controlled, thus the deficit decreases. At the moment it corresponds to the demands imposed by the European Commission. According to the plan approved by the lawmakers, Ireland has to achieve zero or even surplus of the balance and in 2015 it has to reduce budget deficit up to less than 3% of GDP. At the moment, it is too early to speak about a full recovery, the country’s unemployment rate is rather high, 13.7% and the whole share of subprime loans is higher than 25%. However, the economists are sure that the Irish model of the economy will survive. It should be mentioned that in 2010 the problems in banking sector forced Ireland to take out a €85 bln loan.
