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Irish banks to contribute to 350 mln eur resolution fund

DUBLIN, Oct 3 (Reuters) - Irish credit institutions will pay a combined 25 million euros ($32 million) per year into a new 350 million euro resolution fund to minimise taxpayer's exposure to future problems in the financial sector, the government on Wednesday.

Taxpayers had to pump 64 billion euros worth of capital into the banking sector to stave off its collapse after a property bubble burst in 2008. The government has since restructured the sector and overhauled regulation.

The new levy will be used to repay 250 million euros the government has committed to pay into recapitalising the country's credit unions and then to build a 100 million euro buffer to deal with future problems.

Banks covered by a government deposit guarantee, including Bank of Ireland , and Allied Irish Bank permanent tsb will not initially have to pay into the fund, but will eventually contribute, a spokesman for the department of finance said.

The three banks did not immediately respond to a query about how much they would have to contribute. ($1 = 0.7751 euros)

(Reporting by Conor Humphries; Editing by Elaine Hardcastle)

(conor.humphries@thomsonreuters.com; +353 1 500 1518; Reuters Messaging: conor.humphries.thomsonreuters.com@reuters.net)

Keywords: IRELAND BANK/FUND