The Taoiseach Enda Kenny has told banks to "get up and do it now" and engage with mortgage holders in distress.
It comes after the Central Bank's Fiona Muldoon, claimed financial institutions were behaving like teenagers in dealing with the arrears crisis.
Mr Kenny has told the Dáil that if banks don't engage on a case-by-case basis with every distressed borrower, then the personal insolvency legislation is on the way.
He said banks have been well advised to engage.
The Taoiseach said: "The Central Bank required the banks to submit to them by September on a timeline basis what they propose to do, well they better get up and do it now because the movement is going through the Dáil in respect of the insolvency legislation.
"That will kick in on the first of March, there is no veto in there and it allows for debt write-down or debt forgiveness."
