The National Asset Management Agency said it has redeemed a further €500m of senior debt, to hit an end of year redemption target of €7.5 billion.

"Today's milestone marks an important step on the way towards reducing the taxpayer's contingent liability which initially stood at over €30 billion," NAMA's chief executive Brendan McDonagh said.

"We now look forward to the next major challenge to redeem another €7.5 billion by 2016," he added.

NAMA is one of the world's largest property groups having purged banks here of €74 billion of risky loans following the country's property crash. 

"NAMA will continue to pursue its commercial mandate of generating the best achievable return for the taxpayer and intends to make a significant contribution to the resurgence of the Irish economy over the coming years," Mr McDonagh said.