Tánaiste: Central Bank must protect homeowner rights if distressed mortgages sold to 'vulture funds'

The lender earlier this week confirmed plans to sell its non-performing loans, which account for a large chunk of its loan book, under a pitch it calls Project Glas through accountants EY.

Consumer and legal advocates have long argued distressed mortgage borrowers will face more stress if their loans are sold, and question why the lenders can sell off mortgages to equity funds at huge discounts but not write down the loans in the first place.

John McGuinness chair of the Oireachtas Finance Committee earlier this month told the EU Financial Services Commissioner Valdis Dombrovskis that banks here were ignoring the commission’s direction to write down household and business debt, and were selling troubled loans to vulture funds instead.

Today, the Tánaiste said in any loan sale the terms and condition of borrowers remain in place.

Mr Coveney told the Dáil: "Of course people are concerned as to who will be managing their loans and who they will be talking to and negotiating with in terms of debt. We're very conscious of that.

"But we are also conscious of the rules that apply and there is a significant onus on the Central Bank to make sure that, when loans are sold, the contractual rights of those who are linked to those loans continue to apply and we'll do that."