Key appointments to Treasury & NAMA

The Government is set to announce significant appointments to the key positions running Ireland's spiralling borrowing requirement and its bank rescue scheme, RTÉ News has learned.

The developments come as the European Commission calls for Ireland to introduce bigger corrective action to address the crisis in its financial crisis.

Michael Somers set up the National Treasury Management Agency in 1990 and has been in charge of the agency ever since.

An announcement is expected early next month that after 19 years as chief executive he will be retiring.

Dr Somers, whose salary has never been disclosed, is credited with doing a good job of managing Ireland's debt.

However, his comments in May on difficulties facing NAMA flew in the face of Government's endorsement of the bank rescue plan.

He said the NTMA had no experience at bank restructuring and was not adequately staffed to deal with it.

He is expected to be replaced by John Corrigan, who is currently director of the National Pensions Reserve Fund.

The announcement will also confirm that Brendan McDonagh will be the new head of NAMA, a job he has been doing on an interim basis over recent months.

Both Mr McDonagh and Mr Corrigan, if he gets the position, will join the board of NAMA.

Meanwhile, Fine Gael Deputy Leader & Finance Spokesman Richard Bruton has wished Michael Somers well on his retirement as chief executive of NTMA.

He said Mr Somers 'was a courageous and effective public official and in the course of his service saved substantial money for the taxpayer.

Mr Bruton added that Mr Somers 'was not afraid of controversy.

'At a time when few official voices were willing to comment on the obvious risks involved in setting up NAMA', he said.

He said Mr Somers made a significant contribution to opening up public debate.