Permanent TSB has said it is open to "any credible party" purchasing its controversial, €3.7 billion property portfolio, Project Glas.

The bank's comments open up the possibility of a not-for-profit organisation bidding for part of the portfolio.

The move comes after CEO of the Irish Mortgage Holders' Association, David Hall, confirmed that he is attempting to secure funding to buy up to 6,000 of PTSB's restructured loans.

These include split mortgages, where the bank agreed to freeze a portion of the distressed loan, interest free, and allow the borrower to make repayments only on the remainder.

It is believed that PTSB is selling up to €800m of restructured loans.

Last week, Minister for Finance Paschal Donohoe said he was "deeply aware of the concern and vulnerability" felt by PTSB customers who may be affected by the proposed sale.

Speaking to RTÉ News, Mr Hall confirmed that conversations have taken place with a UK bank and a UK investment fund with a view to bidding for the loans.

"These are serious conversations about funding the restructured loans. The fact the conversation is happening is very positive."

Mr Hall added that it was also a positive development that despite the criticism that PTSB had received in recent days, that the bank was still open to the idea of a non-profit entity bidding for the loans.

"Despite the level of abuse that I, and others, have given PTSB, they are still open to a conversation. That is an indication of their sincerity.

"This is a political solution for everyone if these loans can be taken out (of the portfolio)," he added.

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It is understood that Mr Hall is proposing to establish a new entity, separate to the existing Irish Mortgage Holders Organisation, to bid for the restructured element of the PTSB portfolio which amounts to up to 6,000 loans.

A spokesperson for Permanent TSB said: "There is a sales process under way and any credible party can participate in that process as long as they can demonstrate that they have the wherewithal to complete the transaction.

"They should register their interest and sign a non-disclosure agreement."

As it stands Mr Hall's entity would not be regulated by the Central Bank, although he points out that it would be a registered, regulated charity.

"Ultimately if required we will be regulated, but this is a non-profit endeavor designed to save thousands of Irish people from an uncertain future," he said.