Ireland hopeful of debt deal early in new year

Ireland hopes to get agreement in principle on paying down the bank debt early in the new year, as it works through its final few months of its bailout programme.

Even though the country is unlikely to receive any money until 2014, it hopes that agreement on a deal will push down the cost of borrowing as Ireland re-enters the markets next year and the last of the bailout funding is repaid.

Despite warning shots from Germany that recapitalising banks would not be done quickly, Taoiseach Enda Kenny said he hopes the decision will be endorsed by EU leaders at the two-day summit in Brussels.