Updated 11:15am

Leo Varadkar says borrowers who have mortgages owned by so-called "vulture funds" will have greater protections from early 2019.

Concerns over Irish loans being transferred to the foreign-owned funds have been repeatedly voiced throughout 2018.

Fianna Fáil has insisted the loans "must be regulated and held accountable", while Sinn Féin's Donnchadh Ó Laoghaire claims the funds have been "given a free rein".

A bill, which has been brought forward by Fianna Fáil's finance spokesperson Michael McGrath, is set to be enacted in the new year.

The bill was signed into law by the President on Christmas Eve.

The Taoiseach says it will mean the funds will be regulated by the Central Bank for the first time.

He explained: "What we're working on is enacting legislation that Michael McGrath has brought forward, which is to make sure that so-called vulture funds will be properly regulated - we support that and we're going to make that happen.

"We're going to make sure that anyone who has a mortgage, who is paying their mortgage continues to have the exact same consumer protections as they would if the loan had still been owned by the banks."

In a statement, Deputy McGrath said he believes the provisions of his bill will become operational from January 21st.

He observed: “The coming into effect of this legislation is a good day for mortgage holders, business owners and farmers whose loans have been sold on to so called ‘vulture funds’ or who fear their loan will be sold by their bank in the future.

“Up until now, these funds have been untouchable. The Central Bank will now for the first time be able to have direct contact with these funds and apply strict regulation directly to them."

He added: "The law ensures that whoever is ultimately calling the shots on the management of a loan portfolio will be regulated." Ӭ

Permanent TSB loans

This year, controversy arose over Permanent TSB's decision to offload thousands of non-performing loans - a move sharply criticised by several opposition parties.

Mr Varadkar claims the bank - the majority of which is owned by the State - will now be able to provide more loans to people and businesses as a result of reducing the number of non-performing loans on its book.

He argued: "It's now in a much better position to be doing what it should be doing, which is issuing new mortgages and new loans to people.

"The bank is in a much healthier position than it was a year ago."