INSOLVENCY BILL:DEBT forgiveness will be "the dominant factor shaping the Irish mortgage market" as a result of the Government's proposed personal insolvency bill, ratings agency Fitch has said.

However, the “precise impact of debt forgiveness” remains “highly uncertain” for residential mortgage-backed securities, it said.

Earlier this month, Moody’s said a quarter of all Irish mortgage debt was susceptible to being written down under proposals in the Government’s personal insolvency legislation, due for publication in April.

The ratings agency said the proposals were “credit negative” for bonds backed by residential mortgages sold by Irish institutions.