Process to separate Ireland's bank and sovereign debt to start on July 9
Work on how Ireland's bank debt will be removed from the country's overall balance will begin on July 9.
The change comes after EU leaders agreed that the ESM will be able to directly recapitalise European banks instead of having loans added to a country's national debt.
It is hoped the development could shave up to €40bn from Ireland's bank debt.
Taoiseach Enda Kenny agreed it was positive news, but added that for now at least, it was business as usual.
"The Troika are in Ireland again in the next week or so and will continue their analysis. We've got to deal with our own deficit anyway," he said.
"The big principle here which has now been accepted and agreed is the breach between the sovereign and the bank debt, which really was a very big imposition on people."
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