The EU Economic and Monetary Affairs Commissioner Olli Rehn says he backs the idea of granting an extension to Irish bailout loans.

Speaking to CNBC in Brussels he said it is favourable because it will facilitate a successful return to market financing for Ireland which is in the profound interest of the whole European Union.

He also said he backs similar proposals for Portugal.

"We are in principle favourable to this objective because it will facilitate a successful return to market financing for Ireland and Portugal, which is in the profound interest of both of these countries as well as of the whole European Union" he said.

 'Growing confidence in both countries'

"Today's Ecofin reconfirmed the growing confidence in both countries' prospects for a successful return to the markets, to market financing".

"The Ecofin and Eurogroup will,together with the Commission, explore in the coming months how to further facilitate this successful return to market financing" he added.

Eurozone Finance Ministers agreed last night to reschedule the loans made to Ireland by the European Financial Stability Facility (EFSF).

The government is due to pay another €3.1 billion installment by the end of the March unless a deal is reached with the European Central Bank (ECB).