Ireland's Central Bank will contribute a total of €55m to the recapitalisation of the European Central Bank announced this afternoon.
The Central Bank will make the payment in three annual payments of €18.3m this year, in 2011 and 2012.
The Central Bank currently has €63.9m in share capital in the ECB. This will increase to €119.5m as part of a €5 billion increase in the share capital of the ECB.
The 16 euro zone states will contribute around €3.5 billion, with other EU states including Britain being liable for the remainder.
The Central Bank of Ireland makes a profit on its lending to Irish banks, which has increased dramatically this year.
The ECB's move will almost double its capital to €10.76 billion. The bank says the step is being taken because of greater volatility in financial markets and because it is taking on more risk.
Exceptional measures including a massive boost in loans to commercial banks and the buying of government bonds have raised the level of risk carried by the ECB, and economists say the extra funding should provide a cushion against potential losses.
The bank will also be in a position to raise provisions against losses by an equal amount, meaning it will be able to eventually accumulate €21 billion in capital and provisions.
The increase was 'motivated by the need to provide an adequate capital base in a financial system that has grown considerably,' an ECB statement said.
