diff --git a/src/passes/1-parser/pascaligo/Parser.mly b/src/passes/1-parser/pascaligo/Parser.mly
index 10600d8c7..9dbaeafe8 100644
--- a/src/passes/1-parser/pascaligo/Parser.mly
+++ b/src/passes/1-parser/pascaligo/Parser.mly
@@ -237,10 +237,21 @@ field_decl:
 
 
 fun_expr:
-  ioption ("recursive") "function" parameters ":" type_expr "is" expr {
+  | "function" parameters ":" type_expr "is" expr {
+    let stop   = expr_to_region $6 in
+    let region = cover $1 stop
+    and value  = {kwd_recursive= None;
+                  kwd_function = $1;
+                  param        = $2;
+                  colon        = $3;
+                  ret_type     = $4;
+                  kwd_is       = $5;
+                  return       = $6}
+    in {region; value} }
+  | "recursive" "function" parameters ":" type_expr "is" expr {
     let stop   = expr_to_region $7 in
     let region = cover $2 stop
-    and value  = {kwd_recursive= $1;
+    and value  = {kwd_recursive= Some($1);
                   kwd_function = $2;
                   param        = $3;
                   colon        = $4;
@@ -252,12 +263,46 @@ fun_expr:
 (* Function declarations *)
 
 open_fun_decl:
-  ioption("recursive") "function" fun_name parameters ":" type_expr "is"
+  "function" fun_name parameters ":" type_expr "is"
+  block "with" expr {
+    Scoping.check_reserved_name $2;
+    let stop   = expr_to_region $9 in
+    let region = cover $1 stop
+    and value  = {kwd_recursive= None;
+                  kwd_function = $1;  
+                  fun_name     = $2;
+                  param        = $3;
+                  colon        = $4;
+                  ret_type     = $5;
+                  kwd_is       = $6;
+                  block_with   = Some ($7, $8);
+                  return       = $9;
+                  terminator   = None;
+                  attributes   = None}
+    in {region; value}
+  }
+| "function" fun_name parameters ":" type_expr "is" expr {
+    Scoping.check_reserved_name $2;
+    let stop   = expr_to_region $7 in
+    let region = cover $1 stop
+    and value  = {kwd_recursive= None;
+                  kwd_function = $1;
+                  fun_name     = $2;
+                  param        = $3;
+                  colon        = $4;
+                  ret_type     = $5;
+                  kwd_is       = $6;
+                  block_with   = None;
+                  return       = $7;
+                  terminator   = None;
+                  attributes   = None}
+    in {region; value} }
+| "recursive" "function" fun_name parameters ":" type_expr "is"
   block "with" expr {
     Scoping.check_reserved_name $3;
     let stop   = expr_to_region $10 in
     let region = cover $2 stop
-    and value  = {kwd_recursive= $1;
+    and value  = {kwd_recursive= Some($1);
                   kwd_function = $2;  
                   fun_name     = $3;
                   param        = $4;
@@ -270,11 +315,11 @@ open_fun_decl:
                   attributes   = None}
     in {region; value}
   }
-| ioption ("recursive") "function" fun_name parameters ":" type_expr "is" expr {
+| "recursive" "function" fun_name parameters ":" type_expr "is" expr {
     Scoping.check_reserved_name $3;
     let stop   = expr_to_region $8 in
     let region = cover $2 stop
-    and value  = {kwd_recursive= $1;
+    and value  = {kwd_recursive= Some($1);
                   kwd_function = $2;
                   fun_name     = $3;
                   param        = $4;