State hopeful it can refinance €32bn it pumped into banks

The Government’s focus has switched to refinancing the €32bn it spent on recapitalising banks and less on restructuring the Anglo Irish promissory notes, EU sources say.

Finance Minister Michael Noonan is visiting the key capitals of Berlin, Paris and Rome next week before spending two days with fellow ministers in Cyprus at an informal meeting.

After months of little happening, technical discussions resumed last month as the deadline of October 18 set by EU leaders for a deal on Ireland’s debt draws closer.