Irish banker sees government improving bailout terms

DUBLIN (Reuters) - Ireland stands a good chance of persuading Europe to reduce the cost of its bank rescue through refinancing some 30 billion euros (25 billion pounds) worth of IOUs pumped into the former Anglo Irish Bank, the lender's chairman said on Sunday.

Dublin has been pursuing a months-long campaign to win approval to amend the terms of its 63 billion euro bank rescue package and help improve its chances of becoming the first euro zone member to exit a European Union/International Monetary Fund bailout next year.

The government is concentrating on striking a deal on how to better finance the promissory notes, a form of IOU, used to recapitalize the failed Anglo Irish Bank and the chairman of the bank, recently renamed Irish Bank Resolution Corporation (IBRC), sees progress being made

"I think the possibility of (the government) succeeding in getting alleviation on that side is good... because I've seen the results of action that has been taken up until now and I hear the political signals that are coming out," Alan Dukes told national broadcaster RTE.

"I think progress will be made on that."

Officials from Ireland and the country's "troika" of international lenders are due to complete a technical paper on how to cut the cost of the IOUs by the end of February for European finance ministers to consider.

Ireland's finance minister said last week that any European Central Bank (ECB) contribution to the restructuring of Greek debt would strengthen Dublin's negotiating position.

Greek lawmakers will vote on a deeply unpopular bailout deal later on Sunday and look set to agree to the austerity measures required to seal a 130 billion euro EU/IMF rescue package - its second since 2010.

(Reporting by Padraic Halpin; Editing by Erica Billingham)