The President of the European Central Bank (ECB) says it will not pass judgement on the legality of the Irish promissory note deal until later this year.
However Mario Draghi said some of developments in the deal have been positive.
The German Bundesbank has described the agreement - which is designed to reduce the Irish debt burden - as problematic.
But addressing a committee of MEPs this afternoon Mario Draghi said the ECB had yet to pass judgement on the deal.
He said for now the agreement is between the government and the Irish Central Bank.
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Calls for leeway in deal
It comes as the Minister for Social Protection says it is critical that the promissory note deal gives Ireland some leeway.
It is reported the Troika is unhappy with comments in the Dail last week by Minister Joan Burton.
She indicated that the money saved should be used to soften the budget this year.
The European Union, European Central Bank and the International Monetary Fund are concerned that using the money this year could damage the Irish push to return to the bond markets.
But speaking at an employment support conference in Dublin this morning, Minister Burton said the Troika "must be aware" of the high levels of unemployment in Ireland and have indicated themselves that they underestimated the effect of austerity on jobs in Ireland.
