The Governor of the Central Bank, Gabriel Makhlouf, has said it is urgent that every EU country agrees a combined "well designed and well targetted" plan to combat the economic impact of the coronavirus pandemic.

Governor Makhlouf said he was indifferent as to whether that would be under the European Stability Mechanism or so-called 'Corona Bonds' issued jointly by member states.

The Governor was speaking in an interview on RTÉ's Six One News.

Governor Makhlouf also said there was "merit" in the proposal from IBEC to establish a government-backed loan scheme for businesses.

But he warned that Ireland had experience of credit guarantees that had gone wrong in the past.

He said the Irish economy could sustain the level of borrowing needed to fund a deficit in the region of €19.2bn or 6% of GDP as outlined by the bank last week in its quarterly bulletin.

He said he is not in favour of so-called "helicopter money" and that all expenditure to support households would need to be targetted.