Minister for Finance Michael Noonan says Ireland has won a number of concessions on the interest rate charged on the country's bailout that could be worth up to €250m per year.
Speaking on the sidelines of a meeting of EU finance ministers in Poland, Mr Noonan said there had been agreement that the interest rate paid on the €17.7bn EFSF segment of the loan had been reduced further by half a percentage point.
He said this would represent an annual saving to the country of between €1.1bn and €1.2bn per annum when including the overall interest rate cuts agreed last week by the European Commission, as well as the EFSF reduction announced at a summit of EU leaders in July.
A further requirement for Ireland to pay a 20% collateral "buffer" on EFSF loans drawn down had also been dropped.
This move would earn the State a rebate of around €600m in 2016.
Minister Noonan said a longer-term structured arrangement on the €30bn which the State put into Anglo Irish Bank would be more valuable than an agreement that burden sharing could be imposed on senior unsecured bondholders.
The promissary note was a method of paying for the cash sunk into Anglo by way of a €3bn payment each year.
Mr Noonan said that once the interest rate holiday on that arrangement expired in 2013 it would become a very expensive burden.
He said he hoped to begin a negotiation process with the ECB on switching the current arrangement to a longer-term facility, possibly up to 30 years with a more favourable interest rate.
It is thought this could, if agreed to, mean an annual paydown of €1bn instead of €3bn.
Mr Noonan said he was "committed to raising burden sharing again", but that the promissary note issue was "more valuable to Ireland than any burden sharing on residual bondholders."
Call for end to 'loose talk'
US Treasury Secretary Timothy Geithner and German Finance Minister Wolfgang Schaeuble have disagreed sharply over the way to deal with the eurozone debt crisis, with an American call to boost rescue funding running headlong into a European demand for the US to tax financial transactions.
Mr Geithner had urged eurozone leaders to bolster the European Financial Stability Facility (EFSF) rescue fund, but saw that demand instantly rebuffed by Germany, which then demanded Washington drop its opposition to a global financial transactions tax.
This was said to be "emphatically" resisted by Mr Geithner.
Austria's Finance Minister Maria Fekter said Mr Geithner urged Europe to increase the size of its €440bn EFSF for troubled member states and take more action to shore up the financial and banking sector.
However Mr Schaeuble insisted that taxpayers alone could not bear the burden, leaving both sides at odds.
"What's very damaging is not just seeing the divisiveness in the debate over strategy in Europe but the ongoing conflict between countries and the [European] Central Bank," Mr Geithner said on the sidelines of the talks in Wroclaw, southwest Poland.
"Governments and central banks need to take out the catastrophic risk to markets," he said after the non-euro hosts took the rare step of inviting him to attend -- ahead of other non-euro EU states like Britain.
The US Treasury's calls came after eurozone, US, Japanese, Swiss and British central banks took markets by surprise yesterday, announcing they will provide dollars to commercial banks threatened by exposure to the eurozone's debt mountain.
Speaking on RTÉ’s Morning Ireland, Tánaiste and Minister for Foreign Affairs Eamon Gilmore said Ireland could take comfort that its efforts to resolve the economic crisis are working.
Elsewhere, Asian stock markets rose sharply this morning on optimism that efforts to tackle Europe's debt crisis will show results.