Irish Pension Reserve Funds to be Given to Banks

The emphasis in the plan is to avoid drawing down money from the bailout and rely in the first place on money from the Pension Reserve Fund for the banks, and on the €20bn the state borrowed earlier this year to part-fund next year’s national budget.

Economist at the Economic and Social Research Institute, John FitzGerald, said he believed it would be a good idea to use the money in the pensions fund to recapitalise the banks, and keep the EU/IMF funds in reserve in case they needed further money later.

"Using the €20bn in cash we have first would be good for the country in the short run. It would leave the opening debt for 2012 €20bn lower and interest payments would be €1bn less. It would also leave the national debt lower than forecast at the end of next year," he said.'

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