The IMF has completed its eleventh review of Ireland's bail-out and approved a 770 million euro pay out.

The Troika lender says Ireland is meeting its fiscal targets set-out in last year's Budget - with the deficit expected to be about 6-point-8 per cent of GDP this year.

It says our economy grew by 0-point-4 per cent in the second quarter - but is down 1-point-2 per cent year on year because of poor exports and as domestic decline continues.

The IMF also says Ireland's banks are returning to profitability - but carry non-performing loans of over a quarter of their portfolios.

It says the authorities are continuing to inspect the banking sector ahead of Europe-wide stress tests next year.