EU finance ministers have backed Ireland’s bid to repay its IMF loans early, in a deal that will begin to generate savings for the exchequer before the end of the year.

Speaking in Milan today after the ecofin meeting of finance ministers, Minister Noonan told reporters that the initiative had been backed unanimously by all 28 finance ministers, including the three countries that provided bilateral loans to Ireland as part of the bailout package.

This follows yesterday’s agreement by the euro only countries.

"The UK, Denmark and Sweden were all very helpful in supporting and not alone committing to waiving their creditor rights on the EFSM loan, but also waiving their creditor rights on the bilateral loans...We hope that the NTMA will be in a position to refinance in this calendar year," Minister Noonan said.

The IMF has already backed the move, which will see the fund maintain a presence in Ireland’s post-bailout surveillance scheme.

In an interview in today's Financial Times, IMF director Christine Lagarde pinpointed Ireland as an example of a country who has successfully managed to implement tough reforms while maintaining social cohesion.

“The way the Irish have played this is very clever. Portugal is the same - they have got everyone to pull together,” she said.

Minister Noonan also said that he had tasked officials with preparing lists of projects that could be eligible for funding as part of the European Union’s €300 million investment programme that is expected to be launched by European Commission president Jean-Claude Juncker later this year.

This would include “mostly infrastructure projects- energy, roads (and), social infrastructure like schools, health centres” Minister Noonan said.

Sluggish growth figures and persistently low inflation rates over recent months have pushed EU leaders into coming up with growth-enhancing measures to boost the economy.

While countries like France and Italy have been pressing for more investment and less austerity in European economic policy, Germany is still resistant to any measures that would loosen fiscal targets.

Mr Noonan indicated yesterday the estimated savings of between €300 and €400 million from the IMF deal would have an impact on next month’s budget.

“It will have some affect on the Irish budget, we will probably include a prudent and modest figure for additional savings in the NTMA in the budget figures, “ he said yesterday.

The Minister reiterated today that the NTMA expects to raise the first tranche, probably €5 to €6 billion, by the end of this year.

Italy’s finance minister, Pier Carlo Paduan, who chaired the meeting which took place as part of Italy’s presidency of the EU Council, said that ministers had unanimously taken the decision to approve Ireland’s initiative to repay its loans early, adding that the move was “a signal of the success of the Irish adjustment programme.”