The plan to extend the deadline for Ireland to repay its bailout loans to the EU will change the repayment dates for €20bn of loans, according to Minister for Finance Michael Noonan.

The deal would reduce the amount Ireland would have to borrow from the markets between 2015 and 2022 by €20bn.

The proposal to amend the repayment dates has been circulated to EU member states and was laid before the Oireachtas this afternoon.

It is expected there will be final approval at the informal meeting of EU finance ministers in June.

Mr Noonan said: "I am very pleased that the amendment to the maturities on Ireland's EFSF/EFSM loans is now being progressed.

"Copies of the proposals have been circulated to EU member States so they can complete their national procedures and have been laid before the Oireachtas."

The agreement will not change the size of Ireland borrowings but will ease the repayment schedule.