last updated: Wednesday 20 May 2009, 15:50pm

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IMF hails UK bail-out 'a success'

The International Monetary Fund has hailed the Government's attempts to contain the financial crisis 'a success'.

The IMF's report said authorities had 'set the stage for a sustainable recovery' and follows comments by Chancellor Alistair Darling that the recession will be over by the end of the year.

But the IMF's report warned a recovery was being hampered by high levels of household debt.

It also urged the Government to pay back national borrowings faster than planned.

Mr Darling earlier dismissed criticism that his Budget forecasts were too optimistic and insisted the economy will return to growth by the end of 2009.

He said: 'I am not going to change my forecasts. I remain confident that we will see a return to growth at the turn of the year.'

In last month's Budget, Mr Darling estimated the economy would shrink by 3.5 per cent this year but would expand by 1.25 per cent in 2010.

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