lpc2387 timer0 irq works only once

I'm trying to blink diode, using timer0 MR0 irq.
The problem is that the irq works only one time.
I see diode is just blinking once and nothing else.

I localized the issue and here's the code:

#include <lpc23xx.h>

void t0_irq() __irq
{
        if(T0IR&1)
        {
                T0IR=1;//reset irq
                if(FIO0PIN & (1<<9))  //if pin on
                {
                        FIO0CLR  = (1<<9); //pin off
                }
                else
                {
                        FIO0SET  = (1<<9);//else pin on
                }
        }
}

int main()
{
        //setup diode
        SCS |= 1; //enable FIO
        PINSEL0 &=~0x000C0000;
        FIO0DIR |= (1<<9);
        FIO0SET  = (1<<9);

        //setup timer0
        PCONP |= (1 << 1); // power up timer 0
        T0CTCR = 0;            // timer only mode */
        T0TCR = 0;                              // disable timer 0
        PCLKSEL1 &= ~0x0000000C;
        PCLKSEL0 |=  0x00000004;      // timer 0 clock = PCLCK
        T0IR = 0xFF;                    // reset irq flag
        T0PR = 0x00208D55;              // prescaler
        T0MR0 = 5;                      // match register 0

        // configure VIC
        VICIntEnClr |= (1 << 4);  // irq disabling
        VICIntSelect &= ~(1 << 4);// IRQ interrupt
        //VICVectPriority4 = 2;   // priority
        VICVectCntl4 =2;          // (i use old naming convention here)
        VICVectAddr4 = (unsigned long)&t0_irq;  // ISR address
        VICIntEnable |= (1 << 4); // irq enable

        T0MCR |= 0x03;            // irq and TC reset on MR0
        T0TCR = 0x01;             // start timer

        while(1)
        {
        }
}