THE INTERNATIONAL MONETARY Fund (IMF) has reported that Ireland has met the first targets of the joint bailout plan but there are still some significant challenges ahead.

The report was released this afternoon and states that “despite the uncertain political environment” the program’s implementation is on target.  It summarises that a modest export-led recovery is underway.

However, the banks remain under considerable stress and are reliant on help from the Central Bank with almost no access to external market funding. It added that “the fragile political environment” could cause delays in sorting out the banking sector.

The interim review was carried out when the IMF mission visited Dublin between 12 January  and 21 January.

The report added that the next two reviews of the programme will be combined and carried out as soon as a new government has been formed.

The release of the report coincided with comments from the government appointed head of Anglo Irish Bank Alan Dukes today that Ireland would need another £15 billion just to save the country’s banking system.