The Taoiseach has said he was hopeful a deal on the Anglo Irish Bank promissory note payment can be reached today.
Enda Kenny was speaking before Central Bank Governor Patrick Honohan tabled the proposal at a European Central Bank meeting.
The plan was outlined by Minister for Finance Michael Noonan in the Dáil last night.
It would see the State issue a bond that would not have to be repaid until 2025.
The meeting in Frankfurt has concluded and it is understood technical discussions will continue in the coming days.
There will be no comment from the ECB or the Central Bank in Ireland.
Sources say that while the meeting has concluded it did not mean that there necessarily had been a negative reaction to the proposal.
Mr Noonan told the Dáil that the principle item on the agenda in his negotiations is to find an alternative to the promissory note which would be less onerous to the taxpayer.
Minister Noonan said he was proceeding on the basis that the €3.1bn payment to Anglo could be settled with the payment of "long term Government bond of fair value."
He said that discussions were continuing with the European Central Bank and he had not been expecting a statement from the ECB at the conclusion of the Governing Council meeting.
Mr Noonan said "what happens at the end of the month is not the end of it," and said there would be further talks on an overall settlement on a "less onerous" deal on banking debt for the taxpayer.
Sources told RTÉ News the key issue is ensuring that the bonds paid to Anglo would not fall in value below the value of cash.
Negotiations are centred on ensuring Ireland does find itself in a technical default.
In theory, the Department of Finance can make the payment to Anglo without the permission of the ECB.
However, a key issue is ensuring a payment by way of bond is legal.
Sinn Féin's Mary Lou McDonald said the plan left more questions than answers and amounted to kicking the can down the road.
Speaking in the Dáil, Ms McDonald said the debt was left intact for future generations to pay.
Tánaiste Eamon Gilmore said the Government had always worked hard to lessen the costs of bailing out the banks and that it had been consistent on the issue.
Mr Gilmore said the deal would have a positive cash flow benefit for the state as it would free up €3.06bn.
