The Minister for Finance, Brian Lenihan T.D., today announced that he is to provide an option for members of Defined Contribution occupational pension schemes to defer the purchase of a retirement annuity with their pension funds for a specified two year period. Under current arrangements, members of Defined Contribution occupational pension schemes are, in general, obliged to purchase an annuity immediately upon retirement with their pension fund after taking their tax-free lump sum.

The Governing Council of the European Central Bank (ECB) agreed at its meeting in Brussels today, to cut its benchmark interest rate by 0.75% to 2.50%. The cut was the biggest by the decade old central bank.

The Bank of England’s Monetary Policy Committee today voted to reduce the benchmark interest by 1% to 2.0% - - the lowest since 1951and since the bank was founded in 1694, the rate has never been lower than 2%.

AIB Bank, which terms itself, Ireland’s leading business bank with a 41% market share, has today announced a comprehensive package of initiatives to help its 150,000 SME customers during the economic downturn. The bank is providing €1bn funding for investment and working capital requirements and €200m for a Start Up fund.

Markets news on stocks, currencies and commodities.

The Tánaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan, T.D., on Wednesday announced her establishment of an Enterprise Feedback Group (EFG) on the implementation of the Government’s Strategy for Science, Technology and Innovation (SSTI) plan for Ireland to become a world-class knowledge economy by 2013 . The EFG is to be charged with providing feedback from business and industry on the SSTI and advice on the commercialisation of research outcomes from the Government’s substantial investment in research and development.

The Irish economy faces into a bleak 2009. Output is set to fall by the most on record. Consumers will save a greater share of their income and shun spending, and the unemployment rate is likely to breach 10% by the end of the year. Davy Research predicts that the Irish economy will shrink again in 2010 (albeit only slightly) following a sharp dip in 2008 and 2009. It projects real GNP to slip 0.5% in 2010. That compounds the likely 6%+ drop in real national income cumulatively in 2008 and 2009.

Principal news stories from the Irish Independent, Irish Times, Irish Examiner, Financial Times and New York Times.

The Minister for Finance Brian Lenihan on Wednesday appointed a panel of 12 people, including two former finance ministers, a former minister for agriculture and ex-AIB internal auditor Tony Spollen, from which the six banks and building societies guaranteed by the State, must select new board members to “promote the public interest”.

The European Central Bank Governing Council will meet in Brussels on Thursday and it may cut its benchmark rate as much as 0.75% to 2.5%, given the growing evidence of a deep slump in the Eurozone. The Bank of England may cut its benchmark rate by 1% to 2% - - the lowest level since 1951. Interest rates have never fallen below 2% since the Bank of England was created in 1694.