The IMF stuck to business on Monday despite the sexual assault arrest of managing director Dominique Strauss-Kahn, approving 1.58 billion euros ($2.25 billion dollars) in new assistance to debt-laden Ireland.

The International Monetary Fund said it had completed its latest review of the country's progress under the 85-billion-euro ($121-billion-dollar) European Union bailout package for the country, and was ready to release the newest tranche of its rescue loan.

"Ireland is making progress in overcoming the worst economic crisis in recent history," the world financial body said in a statement.

The review had been delayed by a political upheaval sparked by the country's economic collapse, which led to a new government being elected in March.

IMF deputy managing director Naoyuki Shinohara said the country's reform programme was "off to a strong start."

"Resolute policy implementation by the authorities has kept the programme on track during a period of political change and an unsettled external environment," he said in a statement.

"Building upon the credibility of the well received capital needs assessment at the end of March, the government plans to implement bank recapitalisation in a timely manner while containing fiscal costs."

Shinohara said the current economic climate continues to challenge the country's reforms.

"Supporting these efforts with a more comprehensive European plan would help overcome market doubts, regain market access, reduce the threat of spillovers and bring about a recovery of the Irish economy," he said.

The announcement came two days after Strauss-Kahn was arrested in New York and charged with assaulting and attempting to rape a hotel chambermaid.

Strauss-Kahn, whose three-year tenure leading the IMF has garnered much praise, was denied bail on Monday by a New York judge and is in police custody.

channelnewsasia.com