The Finance Minister says he is hopeful of a substantial deal on Irish banking debt before Budget day.

Michael Noonan says he has not scaled back his hopes of an agreement despite concerns over a statement issued by German, Dutch and Finnish Finance Ministers earlier this week.

They said that European Union money should not be used to pay for so called “legacy assets” including older bank debt.

This was seen to cast doubt on our prospects of a sizable deal.

The Finance Minister said earlier this week that a diplomatic offensive will continue to ensure Ireland gets a deal on bank debt.

While the Taoiseach told the Dáil that the deal agreed by EU leaders in June would be implemented.

And today Michael Noonan said he still believes there will be a deal for Ireland before the Budget in December.

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