The head of the European Central Bank threatened to shut down Ireland’s banks in 2010, unless the government accepted a bailout.
A letter has finally been published by Jean-Claude Trichet, showing Brian Lenihan was forced to accept a huge EU-IMF deal.
It’s been revealed to the Irish Times, ahead of an official release expected later.
For the last four years, both the E-C-B and Department of Finance have refused to release the letter for different reasons.
But the E-C-BÂ’s governors were due to consider releasing it today - and this morning itÂ’s been leaked to the Irish Times anyway.
It confirms that the President of the E-C-B, Jean Claude Trichet, contacted Brian Lenin on a Friday - and threatened to cut off all emergency funding for IrelandÂ’s banks.
ThatÂ’s unless Ireland applied for a bailout from the EU and IMF, and all the pain that followed, before that weekend was out.
In short, it gave Brian Lenihan 48 hours to sign up for a bailout, and years of austerity, in order to stop the banks from having to close their doors.
The letterÂ’s likely to cause a major political reaction - but will give the government a useful distraction from the ongoing Water Charges debacle.
