The Minister for Social Protection Joan Burton has said discussions with the European Central Bank aimed at reducing Ireland's bank debt are continuing, despite indications that the ECB is opposed to a deal.
The Government is looking to spread its repayments on Anglo debt over a much longer period of time, and is seeking a lower interest rate on the money it ploughed into the dead banks.
But the ECB, which is resisting the deal, wants Ireland to cut public sector pay and social welfare rates before any debt deal is agreed.
However, speaking at a care centre in Dublin today, Minister Burton said talks on a deal for Ireland are not deadlocked.
Ms Burton said: "The statement by the governor Mario Draghi, that Ireland is taking appropriate steps in relation to recovery, I think they are very positive comments.
"The technical work that he referenced is ongoing and obviously that continues to be a work in progress."