The Taoiseach, Bertie Ahern, is believed to have written cheques for more than €90,000 to repay the money, with interest, which he says was loaned to him by a group of friends in the early 1990s.
The move comes as contacts continue between Mr Ahern's office and the Progressive Democrats ahead of Tuesday's Dáil statements.
The Labour Party claims the repayment is part of a deal between the Coalition parties and has called for a general election to clear the air.
Publican Charlie Chawke confirmed that the money had been repaid.
He said he had passed on some €60,000 to CARI, a charity that raises money for victims of child abuse that is linked to the Taoiseach's wife, Miriam.
The Labour TD, Eamon Gilmore, has said if a general election is not called now, Mr Ahern would effectively become a lame duck Taoiseach, leading a clapped out government for the next nine months.
Speaking on RTÉ's This Week, Mr Gilmore said the Dáil should be dissolved and the people allowed to decide the future leadership of the country in light of the payments controversy
