After six months of deliberation, Minister for Finance Brian Cowen has opted not to make a political appointment to the European Bank for Reconstruction and Development (EBRD).

Instead, Mr Cowen has nominated Anne Counihan, chief executive of the National Development Finance Agency (NDFA), to represent Ireland on the board of the EBRD, which was set up in 1991 to finance developments in the former Soviet bloc. Ms Counihan will succeed former Progressive Democrats' leader Des O'Malley, who finished his three-year term on the EBRD board last July.

The position is understood to command a salary in the region of £120,000 (€182,850), which is tax-free due to the bank's status as an international institution.

The selection of Ms Counihan marks a return to the original policy on EBRD appointments, where civil servants were seconded from the Department of Finance.