Eurozone Finance Ministers have backed-down on plans to tax Cypriot bank deposits of under €100,000.
In a conference call earlier this evening, the ministers discussed the proposed levy of just under 7% on accounts up to €100,000.
Eurozone sources are now suggesting that tax may be scrapped altogether.
There have been chaotic scenes outside banks across Cyprus in recent days - as thousands rushed to remove their savings from cash machines.
Speaking to reporters in Washington earlier, Taoiseach Enda Kenny moved to allay fears of any similar bank runs in Ireland and other bailout countries.
"Cyprus is a different and unique case, and clearly the Cypriot parliament have got to assess and make their judgement in their own way on the deal that has been put through," he said.