Minister for Finance Michael Noonan has said Ireland has met all of its targets under the latest review of its EU/IMF programme.

He and Public Expenditure & Reform Minister Brendan Howlin were speaking at a press conference at Government Buildings.

But the Troika, in a joint statement, said Ireland faced "considerable challenges", as domestic demand remained subdued, unemployment high and that growth from its main trading partners was slowing.

As a result, projected GDP growth for 2012 has been revised down to 0.5%, from an estimated 1% in 2011.

Speaking on RTÉ’s Six One, Mr Noonan said the Troika has agreed to work on a policy paper to replace the promissory notes to be paid to Anglo Irish Bank with something which would cost Ireland less and improves our capacity to pay our debts.

Mr Noonan described the €3.1bn a year payment as “abominable" and said he had tried to draw back on the obligation to pay it but the ECB did not give permission.

Minister Noonan said while we are facing our biggest crisis since World War two there are a lot of good things happening as well.

He said the country has stabilised, the economy is growing again and unemployment has also stabilised.

Minister Howlin said he believed the Government would have "a sizeable portion" of money available from the sale of any State assets to invest in job creation and it had made progress in convincing the Troika on this issue.

Minister Noonan also said that personal insolvency legislation had been deferred until the end of April, as the legislation was technically difficult.

He said the Government would have to make a decision on Permanent TSB, particularly on whether it should remain as a stand-alone bank or be merged with another institution, during this quarter.

Mr Noonan said the Government would still sell Irish Life, but only when the market was right.

He described the issues surrounding Irish Life & Permanent as the "last piece of the banking jigsaw".

He said the EU, ECB and IMF had agreed to work together to develop a common paper on a possible alternative to the promissory notes which would be advantageous for Ireland.

However, he said these discussions were still at a technical and not a political level and any new scheme would require approval from the 27 EU states.

Representatives from the Troika - the European Commission, the European Central Bank and the International Monetary Fund - have been in Ireland for the past week and a half, reviewing the programme.