The International Monetary Fund on Wednesday approved a 3.9 billion euro (3.27 billion pound) disbursement to Ireland under the country's IMF-EU rescue loan agreed in December last year to address the country's financial crisis.

The IMF loan tranche is part of a broader 85 billion euro financing package for Ireland from the IMF and European Union. The IMF said it would issue a full statement on board deliberations later.

The country is half-way through an eight-year cycle of spending cuts and tax hikes as it tries to get its budget deficit under control as part of an IMF/EU-overseen economic adjustment programme.

(Reporting By Lesley Wroughton, Editing by Gary Crosse, Gary Hill)