The Central Bank says the high level of non-performing loans held by financial institutions poses a risk to the Irish economy.
44 per cent of loans in long-term arrears are now over five years past their due date.
The Bank's concerned that four out of ten borrowers in long-term arrears haven't engaged at all with their lender.
It says where mortgage holders engage with their banks there are mostly positive outcomes.
Sharon Donnery is Deputy Governor of the Central Bank:
