UPDATE 1-IMF disbursing more loan money to Ireland

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WASHINGTON May 16 (Reuters) - The International Monetary Fund on Monday praised Ireland's efforts to dig its economy out of crisis and said it was disbursing another $2.24 billion of loans to it after reviewing the country's performance.

The European Union and the IMF together are providing about $120 billion to Ireland to help rescue it from a debt crisis.

"Ireland is making progress in overcoming the worst economic crisis in recent history," the IMF said. With the latest disbursement, Ireland will have received about $10.19 billion from the IMF under the joint loan program with the EU.

Deputy IMF Managing Director Naoyuki Shinohara said Ireland had made "a strong start" at righting its economy since the program was put in place late last year.

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

The IMF cited the Irish government's announcement of bank reforms and plans for recapitalizing domestic banks as "a major step towards restoring the Irish banking system to health" and said that was critical for economic recovery.

It said Ireland was on track to meet its 2011 fiscal adjustment targets and said Ireland's new government was committed to a medium-term fiscal consolidation that will help achieve the goals set for it under the loan program. (Reporting by Glenn Somerville; Editing by James Dalgleish)