October 27, 2010 / 6:46 PM / 9 years ago

C.bank cautious on pension fund buying Irish bonds

DUBLIN, Oct 27 (Reuters) - Ireland’s central bank governor said on Wednesday he was cautious about the idea of the country’s state pension fund being allowed to buy Irish government bonds.

“You have to be very careful, knowing that if you want to do that, knowing that you are doing it and recognising that ... any kind of moving between different accounts would be seen through directly by market analysts.” Patrick Honohan said, pointing out the risk of “double accounting” from such a scheme.

An Irish official told Reuters earlier on Wednesday that Finance Minister Brian Lenihan has been urged by some senior advisers to change the law to allow the country’s 24 billion euro state pension fund to buy Irish government bonds. [ID:nLDE69Q2GV]

Honohan said Irish debt was a good investment at the moment.

“I would think it’s a great buy at current prices,” he said.

Reporting by Carmel Crimmins, Editing by Chizu Nomiyama

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