The Taoiseach says he expects to exit the bailout and fully return to the bond markets next year.

Enda Kenny says he is confident of a conclusion to a deal on bank debt before the next payment of the Anglo promissory note in March.

In an interview he said the reputation of the country has been greatly restored in the last year and signs of confidence are there now.

Taoiseach praises 'patience and understanding'

The Taoiseach also 'categorically' ruled out any second bailout for Ireland adding that there has been a real focus on job creations and investment of credit to small and medium enterprises.

On the issue of unemployment Mr. Kenny said Irish levels are unacceptable to him adding that the government is implementing "a lot of programmes in that area".

He has also praised the Irish people, saying they have shown "great patience and understanding of the difficulties that government faces".

Watch his interview with Reuters here

Mr. Kenny says he hopes European leaders live up to their promise last June to make our debt more sustainable.

He says he is also confident that the government will not have to pay out €3.1 billion in promissory note money in March and that a deal will be in place by then.