The Taoiseach says the government remains confident of securing a deal to ease Irish bank debt burden 

before a €3.1 billion payment is due to be made next month.

Last weekend it emerged that the European Central Bank (ECB) had rejected Ireland's preferred option to extend the loan over a longer period making annual repayments much smaller.

No deal "catastrophic" for Ireland

On Monday Tanaiste Eamon Gilmore has warned that failure to conclude an agreement would be "catastrophic" for Ireland.

While Transport Minister Leo Varadkar admitted that changes are needed to the Irish proposal but he did not say what those changes would be.

Enda Kenny says a deal would ease the Irish return to the bond markets later this year and the government remains in negotiations with the ECB.

He still believes that a deal can be done.

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