The International Monetary Fund has announced that it is releasing almost €1.5 billion to Ireland as part of the EU-IMF financial aid package for the country.

The IMF said Ireland had maintained "resolute implementation" of its economic restructuring programme aimed at reducing debt and shoring up its financial sector.

It said the Irish economy "was showing signs of stabilisation.''

The Fund noted that the Government adopted a plan in March to reorganise and reduce debts of its domestic banks and said the strategy was "ahead of schedule in some areas."

There were concerns in markets earlier this year that Ireland might have to extend its existing EU-IMF bailout or seek a second rescue if it could not successfully return to markets on its own.

However, Minister for Finance Michael Noonan said on Thursday that should not be the case.

The release came after the third-stage review of Ireland's progress under the €85 billion bailout set last December.