THE CHIEF executive of the National Treasury Management Agency (NTMA) Michael Somers will step down on December 3rd.

Minister for Finance Brian Lenihan said yesterday he has appointed John Corrigan, director of the National Pensions Reserve Fund, to the role upon Mr Somers’s retirement.

Mr Corrigan (62) has held senior positions at the NTMA since 1991. He was previously a chief executive of AIB Investment Managers and has played a key role in advising the Department of Finance and Mr Lenihan over the past 12 to 18 months in relation to the bank guarantee scheme, the capitalisation of the institutions, and the establishment of the National Asset Management Agency (Nama).

Mr Corrigan said the NTMA had a “very full” agenda at present and was making significant progress on a number of fronts, including the establishment of Nama and the improving experience of Ireland on international bond markets.

“Ireland’s international standing has improved steadily through the past year. We need to continue our efforts to reassure international investors that progress is being made in stabilising our public finances and to further reduce our borrowing costs.”

He paid tribute to Mr Somers, saying he was leaving “an enormous legacy” at the NTMA.

His predecessor is reported to have been paid about €1 million a year, though the agency has never confirmed how much Dr Somers was paid.

NTMA staff fall outside public sector pay rates as the agency was created in 1990 by the then taoiseach, Albert Reynolds.

Dr Somers (67) has held the post since the NTMA was set up. He had been due to continue as head of the agency until next year. However, it was reported in The Irish Times last week that Mr Somers had indicated to the Minister in April that he planned to step down. Mr Lenihan confirmed today he intends to nominate Mr Somers as a director of AIB. He is expected to be appointed deputy chairman of the bank.