Britain has delivered the third instalment of its bilateral bailout loan to Ireland, Treasury minister Mark Hoban said on Tuesday.

Hoban said Ireland, which needed help to prop up its banks as the euro zone debt crisis unfolded in 2010, had passed a review by the International Monetary Fund and European Union, clearing the way for a payment of 403.37 million pounds.

The instalment - part of about 1.2 billion pounds disbursed so far - has a maturity date of September 30, 2019.

The government believes that it is in our national interest that the Irish economy is successful and its banking system is stable, Hoban said.

Britain, which agreed to lend 3.25 billion pounds directly to its struggling neighbour as part of a seven billion pound contribution to an international bailout, cut the rate it charges on the loan last year to ease pressure on Ireland.

(Reporting by Matt Falloon; editing by Stephen Nisbet)