The Chairman of the Eurogroup of Finance Ministers has said he is hopeful that a new deal will be done tomorrow to give Ireland more time to pay back its bailout loans.

But Jeroen Dijsselbloem also played down concerns that the German Parliament would seek to veto or amend any agreement.

The Troika has proposed a 7-year extension of the repayment dates on Irish loans in a bid to make it easier for the country to exit the bailout deal and return to the markets this year.

'A very good position for Ireland'

Meanwhile the Minister for Agriculture said earlier today 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.

"Like all of these negotiations, it's difficult to get them across the line and...we have a fantastic - both political and financial - negotiator heading up our team, who happens to be the Chair of ECOFIN at the moment" he said.

"I think that's a very good position for Ireland to be in" he added.

Yesterday Jobs Minister Richard Bruton and Education Minister Ruairi Quinn said they are hopeful that a deal on extending the payback on our bailout loans could ease the austerity in upcoming budgets.

Speaking to reporters in Cork, Minister Djisselbloem said he hopes the concession can be agreed tomorrow.