THE Kirk is continuing ­investigations into whether its pension fund may have invested in anti-social ­businesses such as payday loan firms.

It came as the Archbishop of Canterbury admitted revelations that the Church of England's pension fund had helped fund Wonga were "very embarrassing".

A Church of Scotland spokesman said inquiries were "ongoing" to determine whether its finances were linked to companies trading in items such as arms, alcohol, gambling, tobacco, or short-term loans, but added the Kirk's regulations did not rule out these investments totally.

He said: "If it is the case [the Kirk had invested in such firms] there would be a meeting of trustees etc. to decide what to do, eg divest or not."

He said the Church of Scotland did not invest in firms "substantially" involved in activities "felt to harm society more than they benefit it". Substantially is interpreted as resulting in and around 15% or more of total turnover being derived from these sectors."

The spokesman said the Kirk did not invest in credit unions, but was in the "early stages" of talks with interested parties about funding them.