European Union Finance Ministers have formally requested the Troika to do a deal on extending Irish bailout loans. The agreement is expected to be signed-off in Dublin in April.

It would allow Ireland to avoid having to borrow more money at higher interest rates to repay €7 billion in bailout loans by 2015.

Agreement on extending the maturities on Irish European Union loans has been reached in principal and was discussed at a meeting of EU Finance Ministers today.

Extended from 12 to 15 years

The proposals would see the length of time Ireland has to repay its debt extended from 12 years for most of the loans to 15 years. This would see a saving billions of euro and taking some of the pressure for harsh budgets off the government.

Michael McGrath of Fianna Fail has welcomed the deal.

He says that while it will not have any impact on the next Irish budget it will help the country to return to the borrowing markets.