Minister for Finance Brian Lenihan has said the European Union will approve an extension of the bank guarantee scheme until the end of the year.
It will cover corporate deposits, interbank loans and short and long term debt securities.
Ordinary deposits by members of the public are covered by a separate guarantee up to €100,000, which has no time limit.
The difference between Ireland's cost of borrowing and that of Germany rose to a new high on bond markets today.
The yield - or interest rate demanded by investors - on ten-year Irish bonds went above 6.1% at one point this morning. This was almost 3.85% above the equivalent German rate.
Renewed concerns about the amount of debt governments have taken on and a Wall Street Journal article casting doubt on the accuracy of last month's European bank stress tests have led investors to flee bonds issued by Greece, Portugal and Ireland.