The country's first completed insolvency deal has seen more than 70% of the borrower's debt written off, RTÉ News understands.

The arrangement was agreed at a creditors' meeting at the offices of lobby group New Beginning. 

The borrower is a HSE worker from Donegal who was a partner in a business that failed. 

The collapse of the business left the individual with a residual debt they could not pay. 

It is understood three of Ireland's main banks were among six creditors involved. 

The deal follows the issuing of a protective notice in court last month in Co Monaghan. 

The individual's personal insolvency practitioner was Ronan Duffy of Derry-based McCambridge Duffy. 

New Beginning has said the deal is proof of tangible and real hope for the many thousands of Irish borrowers who have been left behind in solving their financial difficulties.

Barrister Vincent P Martin said the deal is hugely significant. He said that under this process it is certain that the debtor has paid all that they can reasonably afford to pay.

He said that up to now, most banks had failed to deal with borrowers in a fair, honest and sustainable way but now there is an opportunity of an independent process.

He said this system will be a lifeline for many borrowers who have waited in excess of five and a half years for their chance of recovery and it would enable them to play a viable role in the Irish economy.

Mr Martin said the only other option for banks who did not engage in the process was where the debtor would face bankruptcy and nobody would get any money.