The European Commission today announced it has released a second tranche of financial aid to Ireland after completing a quarterly review of the EU-IMF financial assistance programme to the State.

The completion of the review means a further €3 billion is made available to Ireland, in addition to the €12 billion disbursed so far. The overall EU financial assistance to Ireland - including bilateral loans from the United Kingdom, Sweden, and Denmark - comes to €45 billion over three years.

In the report, the EC praises the new coalition government for its commitment to the programme objectives and progress made so far. The commission also pointed out "continued strict programme implementation, including of planned reforms to the fiscal framework," is key to assuage "lingering concerns" on Ireland’s debt dynamics.

In a statement, the EC said Ireland’s programme is "on track", that agreed fiscal targets were met for 2010 and that data in 2011 suggests the 2011 10.6 per cent of GDP deficit target is "within reach".

"A comprehensive strategy to recapitalise, restructure and refocus the viable domestic banks was announced by the Irish authorities in the wake of a comprehensive and appropriately conservative stress test, conducted by the Central Bank of Ireland with the support of independent advisers and in close consultations with programme partners.

"Moreover, important steps were taken towards the achievement of the programme’s structural reform objectives, eg with the launching of an independent review of sectoral labour arrangements," the commission said.

The overall EU-IMF aid package for Ireland totals €85 billion.