Global financial giant, the International Monetary Fund has warned over the uncertainty facing the Irish economy by pointing out that the country's banks have not been able to make significant progress and country's debt might become if growth forecast are not met.

The IMF criticised the banks in the country for not improving the way in which they deal with the non-performing assets. The sixth review of Ireland's bailout programme also pointed out that the banks in the country are losing money even before setting aside resources for covering non-performing assets in the country.

The global body said that Irish banks are just beginning to tackle the problem of non-performing loans. It noted that the repossessions were at just 0.3 per cent of total mortgage arrears in the year 2012. It has asked the banks to strengthen the efficiency of the repossession mechanism in Ireland. Ireland has emerged as the only nation in the Eurozone that has received a bailout aid package from the group that is recording growth and also has a current account surplus, however some concerns remain in the banking sector of the country.

The IMF has said that it expects Ireland's economy to grow 1.1 per cent this year, by 2.2 per cent next year and by 2.7 per cent in 2015.