In its second redemption of 2017, the National Asset Management Agency has redeemed €952m in senior debt.

This brings to €29.7 billion the amount of senior debt redeemed to date and represents over 98% of the €30.2 billion of senior debt issued in 2010 and 2011 to acquire bank loans.

NAMA’s senior debt now stands at €500m, which is less than 2% of its original level.

NAMA CEO Brendan McDonagh said: ““With the Government-guaranteed NAMA senior debt now reduced to €500m, NAMA is close to achieving, three years ahead of schedule, its primary commercial objective of redeeming its senior debt and thereby eliminating this contingent liability for Irish taxpayers.

“We remain on course to redeem the remaining €500m of NAMA senior debt later this year.

“Elimination of the contingent liability is a significant achievement in itself but it has also contributed to stabilising and reducing the funding cost of Ireland’s debt.”

If NAMA redeems all of its senior debt this year, it would be done so a year ahead of schedule.

NAMA used €30.2 billion of senior and junior debt to rid Irish banks of €74 billion worth of risky property loans from 2010 following the country's financial crash, and had cut its outstanding debt to less than 9% by the end of last year.

The agency had initially set 2020 as a target to have all of its senior debt repaid, but subsequently brought that date forward by two years, before shortening the timeline further today.

It reduced its senior debt by €5.5 billion in 2016.

NAMA previously said it expects to repay its junior, or subordinated, debt of €1.6 billion by 2020.