The Irish Banking Resolution Corporation will repay the €1.1 billion loaned to it to cover depositors under the State guarantee.
In its latest progress report the bank - which took on the loan books of Anglo Irish Bank and Irish Nationwide - said it had generated €16.5 billion in cash inflows by 6 February through the sale of €21.7 billion worth of loans since December 2013.
After payments to creditors and costs are deducted, IBRC said it was left with net cash of €1.85 billion.
As a result, the bank said it would be able to make a payment to unsecured creditors towards the end of the year.
IBRC has a remaining loan book valued at €3.6 billion, which is to be managed, liquidated or sold off by the bank in the months ahead.
As part of this, the company is putting in place a Service Management Unit, which will begin operating in July.
Of the current 157 IBRC employees, only 46 will remain and these will work alongside staff from KPMG.
The bank also said that it was involved in more than 700 litigation proceedings at the moment, which it described as a "key risk" for its remaining operation.
In a statement, Minister for Finance Michael Noonan said the "sheer scale and complexity of the liquidation of IBRC which is unprecedented in Ireland, is evident in the report."
He said the success of the bank's special liquidators means that there will be no need to transfer assets to the National Asset Management Agency, nor was there any risk of another call being made on the Exchequer.
The liquidation of IBRC had made a surplus of €1.85 billion so far. The figure is revealed in an update report on the special liquidation process.
The surplus will be distributed among unsecured creditors of the bank, once ongoing legal cases are dealt with.
The state is the biggest unsecured creditor of IBRC, and is due €1.1 billion for payments made under the bank guarantee scheme when IBRC was liquidated.
Meanwhile, all creditors have until the end of the month to file a claim with the bank's special liquidators.
These include a number of Credit Unions and Local Authorities, which could make claims of a total of around €50m. It is understood that the biggest claims by credit unions amount to €1.8m and €1.3m.
However Local Authorities are understood to have been slower to register claims, and risk losing money if claims have not been made by the end of the month.
Junior Bondholders of the former IBRC, who did not accept a payout settlement previously, may also be in line for a higher payout, due to the higher surplus. These so-called "holdout" investors are due a total of €270m.
In their progress report, the bank's special liquidators say they cannot estimate the level of payout to unsecured creditors at this time.
This is because the final size of the claims has yet to be adjudicated, and there are still some remaining assets to be sold - chiefly a loan book of €3.5 billion.
There is also ongoing litigation to recover loans from debtors, and there are several litigation cases against IBRC.
No final dividend can be estimated until those cases are settled, but the Special Liquidators hope to make an interim payment by the end of the year.
"I am satisfied with the financial outcome of the liquidation to date which has far exceeded our expectations and has not resulted in any further cost to the Irish taxpayer," the Finance Minister said today.
