European Central Bank president Mario Draghi said the promissory note deal was a "positive" step for Ireland and will be reviewed by the ECB in its annual assessment later this year.

Mr Draghi added that the disposal of the bonds in a way that ensures "compatibility with financial stability" would be "crucial" to Ireland’s restructuring.

The Government exchanged the promissory notes used to bail out former Anglo Irish Bank for long-term sovereign bonds which will be sold down gradually by the Central Bank earlier this month.

Mr Draghi's comments came at a meeting of the Economic and Monetary Affairs Committee of the European Parliament this afternoon.

He added that as the deal was between the Government and the Irish Central Bank the ECB's governing council did not have to make an assessment at the time.

Mr Draghi also discussed the euro following the G20 meeting over the weekend. He said that while the currency exchange rate is "not a policy target" it remains central to growth and price stability.