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The Minister for Finance, Michael Noonan, has cleared the way for bailed out banks to start paying huge bonuses to their top executives once more – not exactly the sort of news you want to hear if you’re struggling to make ends meet every month, huh?

The Irish Independent reports that while all state-supported (cough, taxpayer-supported, cough) banks were under a strict ban when it came to paying bonuses just as they were rescued, the ban is set to be lifted under some new rules that have been put in place. And apparently these bonuses could be paid out as early as next year.

So what are these new rules? Well rather than calling these cash pay-outs bonuses, they’ve been labelled as “incentive arrangements” and they will be allowed at AIB, Permanent TSB and the toxic bank formerly known as Anglo. These “incentive arrangements” are basically bonuses that will be used to reward prominent executives.

The new rules state that all the “incentives” must be “closely related” to the performance of the executives and must be linked to the banks’ business plans.

This is a far cry from a few years ago when all bonuses were explicitly banned. Sources have said that this ban could stay in place until mid-2013, however, by calling them “incentive arrangements” banks have more freedom when it comes to how and when they pay out.

The latest document published regarding the banking situation states that bailed-out banks can pay bonuses to their directors and senior executives while the banks themselves are still dependent on the State. But the big question is where are these broke banks getting the money? Are they using State (taxpayer) money to offer up bonuses?

“The minister will require that any incentive agreements for directors and senior executives are closely related to their performance, measured by the achievement of relevant targets – such targets having regard to the achievement of the business plan,” say the new guidelines for AIB, Irish Life and Permanent, and the former Anglo.

However, Bank of Ireland will not be covered by these new rules as the State only owns a mere 15 per cent of it.

Speaking last night, a spokesman for the Department of Finance insisted that there had been “no change” in its policy on bonuses. He also stressed that the new “relationship frameworks” with the banks did not override existing agreements with the banks that “prohibit” bonuses from being paid out.

The Irish Independent reports that the spokesman refused to disclose any further details about bonuses or “incentive arrangements.”

The former Anglo Irish Bank also said last night that it “does not currently operate incentive arrangements and there are no plans for such arrangements.” Irish Life and Permanent said that it had “no plans” when it came to implementing an incentive arrangement.

So the banks deny it, but documentation suggests that it could be happening.