The Kirk said the global downturn in the financial markets was to blame for the fall in the value of its portfolio.

The church's finances will be discussed at a meeting next month.

Had we sold all our shares we would have made this loss, but we haven't

Church of Scotland spokeswoman

However, a spokeswoman has refuted reports that staff could be made redundant.

The Church of Scotland invests in a number of sectors, but not in tobacco, alcohol, armaments or gambling.

The spokeswoman said that the Kirk had not sold its shares and was waiting for the financial market to "pick up" so that the money could be regained.

"Like many other businesses and individual investors we too have suffered because of the worldwide downturn in the stock market," she said.

"Had we sold all our shares we would have made this loss, but we haven't.

Financial matters

"We have a notional loss of this value."

The spokeswoman said there were no plans to cut the number of ministers.

"It is simply not true that we plan such a move. There is no-one deciding which ministers will go where," she said.

Financial matters will be discussed at a meeting in Perthshire next month.

However, the Kirk stressed that this was an annual meeting at which other subjects would be covered.

Care homes

Earlier this year the church's General Assembly was warned that immediate action is needed to reverse its financial problems.

Concerns of a deepening financial crisis were raised by Reverend James Gibson, convener of the Kirk's board of national mission.

The Church of Scotland has already announced the closure of a number of care homes for the elderly because it cannot afford to keep running them.

The Kirk blamed a lack of local and central government funding for the move.