Taoiseach Brian Cowen has said it is in everyone's interest to co-operate with the draft legislation to establish the National Assets Management Agency (NAMA), which is due to be published tomorrow.
Mr Cowen said NAMA was vital to deal with the current financial situation and to allow for the restructuring of banks.
He said impaired assets can be placed over a much longer time horizon so that banks can raise funds and provide the credit that Irish business now needs.
Mr Cowen also said that NAMA would make sure that the interest of the taxpayer would be protected.
He was speaking upon his arrival at Ballybrit racecourse for day three of the Galway races.
Separately, AIB Managing Director Robbie Henneberry has told an Oireachtas Committee that the bank would not be increasing its standard variable mortgage rates at this point in time, but said a rise in interest rates is inevitable at some point.
Mr Henneberry was speaking at the Joint Committee on Enterprise, Trade & Employment.
Committee Chair Willie Penrose had pressed Mr Henneberry for a guarantee that there would not be an increase in AIB's rates.
On Monday, the country's largest mortgage lender, Permanent TSB raised its variable interest rates by 0.5%.
Banking commentators said it was likely other lenders would follow suit.
