17 eurozone finance ministers have announced changes to the way the euro crisis is being handled.
Following a day of intense negotiations over how to stop the Greek debt crisis spreading into Italy, concessions were announced.
It is understood that if formally approved this could mean Ireland could avail of a lower interest rate, longer debt maturities and further savings on the debt burden.
A spokesman for the Minister for Finance Michael Noonan described tonight's statement as a positive development.
The group announced that it would carry out changes to the European Financial Stability Facility.
One third of Ireland's €67.5bn loan was arranged through the EFSF.
The changes included 'enhancing the flexibility and the scope of the EFSF, lengthening the maturities of the loans and lowering the interest rates, including through a collateral arrangement where appropriate.'
In a news conference the chairman of the eurogroup, Luxembourg Prime Minister Jean-Claude Juncker, confirmed that the changes would apply to all 'programme' countries including Ireland.
These are changes which have formally been agreed in principle.
The detail will be worked out later at a further meeting of eurozone finance ministers.
Under the changes the EFSF could be used to purchase bonds in secondary markets, provide guarantees for further loans, and extend special credit lines.
If the EFSF buys Irish bonds in secondary markets at below par value that would then realise a saving for Ireland on its debt level.
European Parliament President's visit
Earlier, the European Parliament President Jerzy Buzek had said he supported Ireland’s quest for a cut in the interest rate charged on EU bailout loans.
On an official visit to Ireland, Mr Buzek said a cut in the interest rate would help boost the growth prospects of the Irish economy.
He had said recent visits to Berlin and Vienna convinced him that politicians there would like to show solidarity with Ireland, as well as expecting Ireland to show it was following the conditons of the bailout.
Mr Buzek visited the site of the Battle of the Boyne earlier today, and will meet Taoiseach Enda Kenny tomorrow before addressing a meeting of the Senate.
His visit is part of the preparations for the Irish presidency of the European Union, which begins in 18 months time.
European Stability Mechanism Treaty
Meanwhile, Tánaiste and Minister for Foreign Affairs Eamon Gilmore said a bill to ratify the European Stability Mechanism Treaty will probably be brought before the Dail in the autumn.
He said the Government had not decided exactly which legal instrument would be used for the ratification, and was awaiting advice from the attorney general.
The ESM treaty was signed by finance ministers from the Eurozone states in Brussels today.
It amends the Lisbon treaty to allow for the creation of a permanent Euro area bailout fund.
The new fund is due to come into existence on 1 July 2013.
The former Attorney General advised the previous Government that such an amendment would not require a referendum here, as the establishment of th ESM did not transfer new powers to the EU, and was not in conflict with the Irish Constitution.
However this view may be challenged in court by Eurosceptic groups or individuals.
