Bidders for the loan book of IBRC have agreed to abide by the Central Bank Code of Conduct on mortgage arrears if their bid is successful. An agreement was reached between the bidders and special liquidators for IBRC today.

Minister for Finance Michael Noonan has already ruled out legislating to protect the 13,000 mortgage holders whose loans will be sold by the former Anglo Irish Bank.

Representatives from the Department of Finance, as well as the liquidators, are due before the Oireachtas Finance Committee tomorrow to discuss issues and concerns surrounding the sale of the residential loan book.

The joint special liquidators from KPMG say the agreement was reached with the phase two bidders.

The liquidators say they were aware of the anxieties of mortgage holders, and noted concerns expressed recently by the Minister for Finance Michael Noonan and other members of the Oireachtas.

"We are pleased that the bidders have voluntarily indicated that if successful, they would direct that the mortgage loans were serviced in accordance with the terms of the CCMA".

"We are satisfied that the voluntary nature of this arrangement strikes a fair balance between the interests of mortgage holders as well as interests of the creditors of IBRC" they said.