Church to Borrow to Pay Settlement

The Boston Archdiocese will take out loans and try to collect from its insurance companies to pay its $85-million settlement with alleged victims of child-molesting priests, the archbishop said Wednesday.

Archbishop Sean O’Malley said the archdiocese is also considering selling more of its real estate holdings, but he would not give specifics.

He reiterated the church’s pledge not to use parish collection money to cover the settlement with 552 victims.

He called the settlement, announced Tuesday, “the answer to many prayers.”

“Obviously, we are very satisfied, very pleased that the settlement has been reached.

“We’re hopeful this will advance the cause of healing,” O’Malley said in a brief interview with Associated Press at the campus of the U.S. Conference of Catholic Bishops in Washington, where O’Malley is attending a meeting this week.

The archdiocese has been financially hurt by the scandal, and with collections down, it reduced its budget by 30% last year. The settlement money is to be delivered to victims by the end of December.

“The diocese is making a very great sacrifice to make this commitment at a time when our resources are limited,” O’Malley said.

The deal was reached by a small group of attorneys involved in negotiations with the archdiocese. It was ratified Wednesday by about 50 attorneys who represent the 552 victims who sued.

Attorney Roderick MacLeish Jr., whose firm represents about half of the victims, said O’Malley told the victims’ lawyers during the weekend negotiating session that the archdiocese would have to get most of the settlement money from loans.

“He said, ‘I have to be the one to do this, and I will do it,’ ” MacLeish said.

Former Boston Mayor Raymond Flynn, who served as U.S. ambassador to the Vatican, said he believes some Catholic benefactors may be willing to make donations to help pay for the settlement.