The government said on Tuesday it had released the second part of its bilateral rescue loan to Ireland, after the euro zone state passed a review of its financial assistance from the European Union and the International Monetary Fund.

The Treasury said it paid out on Monday 403.37 million pounds of a 3.2 billion pound bilateral loan agreed in late 2010 as part of international efforts to stabilise Ireland's economy, a victim of the euro zone debt crisis.

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

The government continues to support Ireland's efforts to improve its economic situation.

(Reporting by Matt Falloon)