On Wednesday the International Monetary Fund approved the 3.9 billion euros tranch for Ireland as part of its bailout out deal announced last year.

Under the 85 billion euro rescue package for Ireland announced by the IMF and the EU the country so far received 13 billion euros from the IMF. After conducting the fourth review of the program the European Commission as well agreed to disburse its share of the tranch in January 2012 worth 4.2 billion euros.

The Commission said that the fiscal performance is on target and the budget deficit for 2011 is expected well below the ceiling of 10.6% of the GDP as entailed by the program. The Commission also welcomed the 2012 budget which targets bringing the deficit further lower to below 8.6% of the GDP.

Nevertheless, the news were not all well with the downside revision to growth expectations for next year to 1.0% from the earlier estimate of 1.9% due to the impact of slowing global growth as the risks are still tilted to the downside. The outlook was coupled with upward revision to 2011 performance to 1.1% from 0.6% due to the strong performance in the first half of the year on strong export growth. The economy is projected to pick up the pace in 2013 with 2.3% projected growth and reaching 3.0% in 2015.