Ireland's EU/IMF lenders have agreed to let it invest much of the cash it gets from privatisation rather than use it to pay down debts, if the proceeds are substantial, the Irish prime minister said on Sunday.

Ireland's troika of lenders, the European Central Bank, the European Union and the International Monetary Fund, earlier indicated that privatisation proceeds should be used to cut the national debt.

The troika are agreed that depending on the scale of these sale of assets ... that a substantial amount of the assets received ... can be invested in job creation, Prime Minister Enda Kenny told state broadcaster RTE Sunday.

That is a significant change from where the troika were when these discussions started.

Kenny's government has a target of raising 2 billion euros in asset sales. However, it has said it would consider raising its target if it could use some of the proceeds to stimulate its economy rather than channelling it all into debt reduction.

In a staff report last year, the IMF said Dublin should consider an asset disposal program of up to 5 billion euros. The troika have not, however, imposed a deadline on selling off the assets, given volatile global market conditions.

(Reporting by Conor Humphries; Editing by Will Waterman)