KBC Bank has said it will not pursue Stephanie Meehan for any residual interest or capital on the balance of her mortgage for her apartment in Priory Hall in Dublin.
Ms Meehan's partner Fiachra Daly took his own life in July, with his partner saying that he was under stress following the evacuation from their home in the apartment complex in Donaghmede.
The couple and their two children, along with 65 other families, were ordered to leave in October 2011 after fire safety problems and construction defects were found.
KBC Bank had written to Ms Meehan following her partner's death to inform her that she would still owe them almost €17,000 after her partner's life insureance policy had been redeemed.
Ms Meehan had written to Taoiseach Enda Kenny appealing for help.
The bank has now said it will not be pursuing the outstanding amount.
In a statement KBC Bank acknowledged that any residual amount due on the mortgage was irrecoverable.
It said: "KBC will not be pursuing Stephanie Meehan or the estate of the late Fiachra Daly for any residual balance due on the mortgage.
"KBC has spoken with Stephanie Meehan's financial advisor this afternoon and advised them of the bank's decision in this specific case.
"KBC deeply regrets if the bank added further to the upset of Ms Meehan and her family following the passing of Fiachra Daly."