Of great importance to loyal state (7)

I believe the answer is:

fateful

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'state' is the definition.
Both the answer and definition are adjectives. Perhaps you can see an association between them that I can't see?

I don't understand the rest of the clue.

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(Other definitions for fateful that I've seen before include "Prophetic - portentous" , "Portentous; bringing death" , "Dire in its implications" , "critical" , "Decisive" .)

I've seen this clue in the Irish Times (Crosaire) and the Irish Times.

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