Finance Minister Michael Noonan says the liquidators of the former Anglo Irish Bank and Irish Nationwide have begun selling off its loan book.
The Irish Banking Resolution Corporation was liquidated almost a year ago.
The sell off of the first tranche saw 84pc of an IBRC portfolio, called Evergreen, sold above the valuation set by independent experts.
The portfolio was initially worth €2.5bn, but the level of writedown is not yet clear.
However, the portfolio did contain better performing loans taken out by trading Irish businesses generating cash.
Mr Noonan says there will not be a “black hole” when the IBRC’s liquidation is completed.
The minister said Irish Nationwide’s loan book will be split into four lots for sale: performing, non-performing, owner occupies and buy to let.
Mr Noonan said he expects the majority of any sales of IBRC’s loan book to be completed in early 2014.
Any loans not sold on will be transferred into NAMA.
The Government expects 50pc of IBRC’s loans to be sold and 50pc to go into NAMA.