The Finance Minister Michael Noonan has held meetings with senior European Union officials over plans to repay a part of Irish loans from the International Monetary Fund (IMF) early.

Mr Noonan met with the Vice President of the European Commission responsible for Economic and Monetary Affairs, Jyrki Katainen.

Speaking after the meeting, Mr Noonan stated "I had a very constructive meeting....and discussed the Irish government’s plans to enhance Ireland’s debt sustainability through the early repayment of a portion of our IMF loans."

"Throughout the EU/IMF programme the EU Commission have been very supportive of Ireland’s efforts to improve our debt sustainability."

"The reduction of the interest rate on our loans in 2011 and the extension of maturities on our EU loans in 2013 supported Ireland’s successful return to the markets in 2014."

"The positive momentum towards Ireland has continued following the exit from the Programme and I briefed Mr. Katainen on the opportunity that now exists to make an early repayment of a portion of our IMF loans and replace it with less expensive market funding," he added.

Mr Katainen indicated that he was, in principle, very supportive of Irish plan to pursue measures that reduce the Irish debt burden and improve Irish debt sustainability, Mr Noonan said.

Mr Katainen added that he wanted to receive more details to allow for a comprehensive assessment of the plan.

Mr Noonan says he will discuss the issue further at meetings with Klaus Regling - CEO of the ESM - Jeroen Dijsselbloem - President of the Eurogroup - and Mario Draghi - President of the ECB - tomorrow.

Ireland is currently paying interest rates of almost 5% on its loans from the IMF as part of the Troika deal. But if the country was taking the same loans today, the money markets would charge a far lower rate of just 1.5%.