IMF approves 1.4 billion euro loan disbursement to Ireland

The International Monetary Fund (IMF) logo is seen during a news conference in Bucharest March 25, 2009.

WASHINGTON (Reuters) - The International Monetary Fund on Wednesday approved a 1.4 billion euro ($1.13 billion pounds) disbursement to Ireland under a three-year IMF-EU rescue loan and cautioned that the broader euro-zone debt crisis could dampen the country's export-led recovery.

"Ireland's policy implementation has continued to be steadfast and ownership of the program remains strong despite the considerable challenges the country is facing," the IMF said in a statement.

"However, as financial tensions in the euro area have resurfaced, Irish sovereign bond spreads have risen in recent months to exceed the level at the outset of the EU-IMF program," the fund added.

(Reporting By Lesley Wroughton)