The 'first step' in re-adjusting Irishbank debt is likely to be achieved this evening if the scope and terms of the European Banking Supervisor are agreed by European Finance Ministers.
Finance Ministers are in extraordinary talks in Brussels with a break-through on agreement of the European Banking Supervisor likely.
Minister for Finance Michael Noonan says he is 'hopeful' that he and his European counterparts will reach a deal which will be signed off by European heads of state and government at the EU Council meeting on Thursday and Friday.
The European Central Bank (ECB) will assume responsibility for the supervisory role.
Doubts existed over whether the deadline of a legal framework for the supervisor - supposed to be in place by January 2013 - would be achieved.
German & British concerns
German concerns about responsibility for weak 'zombie banks' as well as fears from non-Eurozone states that they will be at a significant disadvantage are to be discussed and likely solutions found today.
The UK fears that this deeper economic and fiscal integration amongst the Eurozone as well as some other EU states that wish to be involved will put the City of London on the periphery of a wider European banking union.
Speaking ahead of the meeting this afternoon Minister for Finance Michael Noonan says he is hopeful of an agreement to reach the first step to a better deal for Ireland.