Finance Minister Michael Noonan has told the Oireachtas Finance Committee that the recent changes to the bailout deal could mean a saving of about €900m.
He said the details of the changes were still being worked out, so he could not give an exact figure.
Mr Noonan said the cut of about 2% in the interest rate would apply to money that has yet to be drawn down, as well as to interest payable on existing loans.
The minister said there were indications the IMF might reduce its loans to this country, but the €900m figure did not include any IMF cut.
He said the British Chancellor of the Exchequer, George Osborne, had indicated he would reduce the rate on the British loan, along the lines of what had been negotiated with the EU.
However, Sinn Féin said Ireland will still need a second bailout, despite the rate reduction.
In a statement, Sinn Féin Finance Spokesperson Pearse Doherty said the party welcomed the interest rate reduction secured at the summit.
‘Indeed when the Government seemed to accept that the best deal on offer was a 0.6% reduction on new draw-downs, Sinn Féin argued strongly for a 3% reduction on the basis that our European partners should not profit to the tune of €9bn from emergency loans provided to Ireland,' he said.
Mr Doherty said it was his belief that Ireland would be unable to return to the markets in the second half of 2013.
