The International Monetary Fund has approved another €3.23 billion loan to Ireland following its fifth review of the country's bailout programme.

The disbursement of the latest loan brings the total monies loaned to Ireland by the IMF since the start of the bailout to more than €16 billion.

"The Irish authorities have continued strong implementation of their program despite deteriorating external conditions," IMF first deputy managing director David Lipton said in a statement after the fund's executive board approved the disbursement.

After three years of contraction, Mr Lipton said Ireland grew an estimated 1 per cent in 2011, and was able to meet its fiscal consolidation targets with room to spare and advanced structural reforms to support growth and job creation, .

"At the same time, the challenges Ireland faces have intensified since the outset of the program, with growth expected to ease to about 0.5 per cent in 2012 owing to a slowing in trading partner activity," Mr Lipton said.

"The Irish authorities have responded by raising the fiscal consolidation effort adopted in Budget 2012, and the budget remains on track to meet an unchanged general government deficit target of 8.6 per cent of GDP. If growth should weaken further, the automatic stabilisers should be allowed to operate to help avoid jeopardising the fragile recovery," he said.

"Continued strong implementation of fiscal consolidation, and financial and structural reforms by the Irish authorities will be critical for the government to regain timely and substantial access to market funding," Mr Lipton said.

"Continued strong European support remains essential to the effectiveness of the authorities' efforts," he added.