The National Asset Management Agency said it had redeemed a further €1 billion of senior debt today. 

The agency said this brings to €26.6 billion the amount of senior debt redeemed to date.

This represents 88% of the €30.2 billion of senior debt originally issued in 2010 and 2011 to buy bank loans.

Today's move means NAMA's senior debt now stands at €3.6 billion, less than one-eighth of its original level.

NAMA's chief executive Brendan McDonagh said that the agency remains firmly on course to meet its ultimate target of redeeming all of its senior debt by 2018.

This is two years ahead of the schedule originally set when NAMA began its operations.

Mr McDonagh said the agency "is firmly on course to deliver a surplus for Irish taxpayers of at least €2.3 billion".