FINANCE MINISTER PASCHAL Donohoe today commenced the National Surplus (Reserve Fund for Exceptional Contingencies) Act 2019, which is more commonly referred to as the Rainy Day Fund.

The purpose of the fund, according to Donohoe, is to “mitigate severe economic shocks, in excess of the normal fluctuations of the economic cycle”.

Donohoe said that the establishment of the Rainy Day Fund is the culmination of a number of years’ work and delivers on a key commitment in the Programme for Partnership Government. 

He added: “The Government is planning for the country’s long-term future by enhancing the resilience of the Irish economy and public finances to future economic shocks and strengthening the public finances.

“On foot of today’s commencement, I will shortly issue directions to the NTMA to transfer €1.5 billion from the Ireland Strategic Investment Fund (ISIF) to seed the Fund.  I have also signed the necessary Delegation Order for the National Treasury Management Agency (NTMA) to manage the investment of the Fund on my behalf.

“Establishing this Fund is another Government action that better prepares us for any potential Brexit outcome.  In the event that the economic impact of a disorderly Brexit is larger than assumed then the funds transferred to the Rainy Day Fund can be deployed to mitigate the impact of Brexit.”