A slowing economy, sky-high debts and a weak banking sector mean Ireland will need support from the European Union when its current bailout ends later this year, the International Monetary Fund said in a report on Friday.

In a clear call for Brussels to accede to Irish demands for a credit line next year, the IMF warned that Dublin's recovery would be hampered without cheaper funding for its ailing banks.

The report will deal a blow to the Irish government, which is under pressure domestically to maintain business and consumer confidence in the face of significant economic headwinds. In particular, export growth, which has underpinned the economy's recovery, has fallen in 2013.