The Minister for Finance Paschal Donohoe has reassured mortgage holders whose loans have been transferred from Permanent TSB to Pepper Finance Corporation.  

The securitisation agreement, announced yesterday, will see more than 6,000 loans moved to a special purpose vehicle which will be financed on the bond markets. 

Most of the loans involved relate to owner occupied homes, where restructuring arrangements have been put in place. 

Paschal Donohoe said those affected should be confident that the code of conduct in relation to mortgage arrears will be "upheld rigourously" by the Central Bank.

He added that Pepper Finance has confirmed that it will fully adhere to the restructured agreements.  

He also said that Pepper has indicated it will go before the Oireachtas finance committee about the issue.

Permanent TSB said it will continue to service the loans for a period of six months at which time the servicing will be transferred to Pepper Finance Corporation. 

The Minister said it is a "further development" that restructured loans are being sold on.

He said the challenge is that those who regulate banks see these loans as being "very very different" to mortgages that have not been restructured or changed. 

Because of this, Mr Donohoe said the loans are seen as a source of potential risk for both the bank and the economy. 

The Finance Minister also said he would take the findings of the Irish Fiscal Advisory Council "very seriously" and would take on board their warnings.  

This comes after IFAC criticised the Government for "repeatedly" missing its own financial targets and for failing to manage the public finances in a prudent manner.  

Speaking on Morning Ireland, Paschal Donohoe said expenditure between 2014 and 2019 increased by 20% in comparison to an increase of 57% in a similar period during the boom.