Finance Minister Michael Noonan says Ireland has won a number of concessions on the interest rate charged on the country's bail-out that could be worth up to €250m a year.

Speaking on the sidelines of a meeting of EU finance ministers, Mr Noonan said there had been agreement that the interest rate paid on the €17.7 billion 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 €1.1 billion and €1.2 billion a year, when added to 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 has also been dropped. This move will earn the state a rebate of around €600m in 2016.

Noonan to look for longer Anglo deal

Minister Noonan has also said a longer-term structured arrangement on the €30 billion which the state put into Anglo Irish Bank would be more valuable than an agreement that losses could be imposed on senior unsecured bondholders in the bank.

The promissory note was a method of paying for the cash sunk into Anglo, involving a €3 billion 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 European Central Bank 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 €1 billion instead of €3 billion.

Mr Noonan said he was "committed to raising burden-sharing again", but that the promissory note issue was "more valuable to Ireland than any burden-sharing on residual bondholders".