UPDATE 2-Irish c.bank's Hurley to remain after term expires

Published 01/08/2009, 02:41 PM
Updated 01/08/2009, 02:48 PM

(Adds central bank comment, detail)

By Jonathan Saul

DUBLIN, Jan 8 (Reuters) - Ireland's central bank governor John Hurley will stay in office for some months after his term expires in March to ensure a steady hand at the helm during the current financial turmoil.

"Governor Hurley is happy to agree to the request by government to remain in office after his term ends in March for a period of some months during the current financial turmoil," a a central bank spokesman said on Thursday.

Under Irish law a governor is formally appointed for a period of seven years.

Hurley, 63, who is also a member of the European Central Bank's Governing Council, was appointed head of the central bank in March 2002.

Finance minister Brian Lenihan's office said in a statement he was "anxious" Hurley would continue in office over the coming months to ensure continuity and leadership.

Hurley's predecessor Maurice O'Connell was reappointed governor in May 2001 after serving a seven-year term of office and stayed on until March 2002 to help oversee Ireland's changeover to the euro.

Hurley, who has previously served as secretary general in the finance ministry, has been at the forefront of government moves to help shore up confidence in the country's banking system.

The government said in December it planned to inject 5.5 billion euros ($7.46 billion) into the country's three biggest lenders. The banks' share prices have plunged as a domestic property bubble burst and the global economy shrinks.

The government will ask Ireland's President Mary McAleese to reappoint Hurley in March, the finance ministry said. (Editing by James Dalgleish)

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