The Minister for Agriculture says it will be difficult to get a deal on extending the maturities on Irish bailout loans over the line. But Simon Coveney says the negotiations are moving in the right direction.

It follows a recommendation from the Troika that the amount of time Ireland has to repay its EU loans be extended by 7 years.

The issue will be discussed at the ECOFIN meeting of EU Finance Ministers in Dublin this weekend but no binding decision will be made.

Deal 'not a second bailout' 

Yesterday two members of the Cabinet said they are hopeful that a deal on extending the payback on our bailout loans could ease the austerity in upcoming budgets.

"Of course it will have benefits", declared Jobs Minister Richard Bruton. "It gives stability and confidence and that's obviously of real, practical value to workers, business and to the community at large" he added.

"It has the possibility - if it comes through and we can't anticipate that - of reducing in effect the cost of our mortgage", said Education Minister Ruairi Quinn. "It's not the arrival at the destination, but it's great encouragement to keep going" he added.

While Fianna Fáil denied that any such deal would effectively be a second bailout.

"It isn't a second bailout, but you could see it in a way as an extension of the existing one and in a way that would be favourable for the country", according to Finance spokesman Michael McGrath

Minister Simon Coveney says a deal would be a positive step for Ireland and as the Finance Minister Michael Noonan is the Chair of ECOFIN he is in a good position to lead the talks.