The government is reported to be in talks about repaying some of its bailout loans early in a move that could save the exchequer billions.

The Irish Times says discussions have been taking place behind the scenes, but any decision would require approval from European Union member states.

Ireland is understood to be in talks to restructure the International Monetary Fund (IMF) part of the bailout - which currently sees the government paying about €1 billion a year in interest.

It is unlikely a formal decision would come before the October budget.

Meanwhile speaking in Dublin yesterday, the advisor to the German Chancellor said there is no hope of the government getting a deal on the €64 billion bailout.

Joachim Pfeiffer said the European Stability Mechanism (ESM) could only be used in the future and not retrospectively.

The Irish Times European correspondent, Suzanne Lynch, told Newstalk Breakfast that Germany has never supported the idea of the retrospective recapitalisation of the banks through the ESM.

Meanwhile a delegation will meet with the Governor of the Central Bank Patrick Honohan this afternoon in an effort to find ways to alleviate the bank debt burden.

MEPs Luke Ming Flanagan and Nessa Childers will be part of the delegation - as well as deputies Peter Mathews and Stephen Donnelly.

Also taking part are members of the Ballyhea Campaign Group.

Their spokesperson Diarmuid O'Flynn says they will mainly be looking to discuss the promissory note aspect of the bank debt.