Impasse on loan sale to vulture funds

Struggling mortgage holders must be offered debt write-downs instead of so-called foreign vulture funds, Paschal Donohoe has been told.

“It is very difficult, very difficult to see how a solution can be found,” a senior Government source said.

The finance minister is facing a dilemma of trying to avoid a clash with Fianna Fáil, while also allowing PTSB reduce down the level of its non-performing loans.