Lenihan’s letter on bailout acceptance released


 

THE CRITICAL letter written by late minister for finance Brian Lenihan in 2010, accepting that Ireland could no longer operate as an independent State and would need a bailout package, has been released.

Mr Lenihan’s letter, dated November 21st, 2010, was to former European Central Bank president Jean Claude Trichet and conceded that the government under taoiseach Brian Cowen had taken a “grave and serious decision” to seek assistance from the troika of international lenders. The letter sheds new light on the extraordinary pressure faced by the government in the lead-up to the bailout decision.

The three-page letter was written in response to one that Mr Trichet sent to Mr Lenihan two days beforehand, on November 19th. Details of that letter were published in The Irish Times last month. In it, Mr Trichet urged Mr Lenihan and his government colleagues to accept the necessity for a bailout and agree to a programme with the troika.

Mr Lenihan, in ceding the inevitability of a bailout, wrote: “There comes a point at which negative sentiment starts to feed on itself, even independently of underlying realities, and we are clearly at that point.”

“[In response to the points made in your letter] I would like to inform you that the Irish Government has decided today to seek access to external support from the European and international support mechanism. This grave and serious decision has been taken in the light of the developments . . . and the recent communications and the advice you have conveyed to me personally and courteously in recent days.”

In the course of the letter, obtained by online news site thejournal.ie, Mr Lenihan set out a strong defence of the government’s actions since the banking crisis erupted in Ireland in September 2008, which he described twice as “aggressive” and also as “assertive”.

“Ireland has worked very aggressively, and to the limits of our fiscal capacity, to protect and repair the banking system in the light of the dangers to the financial stability both in Ireland and in Europe.”

He listed actions such as the 2008 bank guarantee; the bank recapitalisation programme; the nationalisation of Anglo Irish Bank in January 2009; the establishment of Nama in April 2009; and the €32 billion of capital which had been injected into the banking system. He also said the government had made fiscal adjustments amounting to €15 billion with a further €15 billion in adjustments until 2014.

“The measures for 2011 alone will amount to over €6 billion. Thus, Ireland has proved so far to be flexible and aggressive in dealing with its problems and will continue to be so.”

Mr Lenihan contended the measures had led to improvement in early 2010 but that intervening international events had led to a “sharp reversal”. These included the Greek debt crisis and the concerns it prompted about Ireland; a slowdown in economic recovery worldwide; negative market sentiments; credit rating downgrades. All of this, he said, “led to a crisis of confidence in both the Irish banking system and increasingly the Irish Sovereign”.

Thanking Mr Trichet for his courtesy, he concluded: “You know that we will not be lacking in the will to do all that is necessary on our part to protect our economy and people and to play our role.”

via Lenihan’s letter on bailout acceptance released – The Irish Times – Thu, Oct 25, 2012.

via Lenihan’s letter on bailout acceptance released – The Irish Times – Thu, Oct 25, 2012.

About Old Boy

Love the past and the future but live in the present

Posted on October 25, 2012, in Government, IMF/ECB and tagged , , , , , , , , , , . Bookmark the permalink. 1 Comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

MovieBabble

The Casual Way to Discuss Movies

OLD HOLLYWOOD IN COLOR

...because it was never black & white

LEANNE COLE

Art and Practice

CURNBLOG

Movies, thoughts, thoughts about movies.

FilmBunker

Saving you from one cinematic disaster at a time.

From 1 Blogger 2 Another

Sharing Great Blog Posts

Wonders in the Dark

Cinema, music, opera, books, television, theater

Just Reviews

Just another WordPress.com site

Mark David Welsh

Watching the strangest movies - so you don't have to...

conradbrunstrom

Things I never thunk before.

News from the San Diego Becks

The life and times of Erik, Veronica and Thomas

The Silent Film Quarterly

The Only Magazine Dedicated To Silent Cinema

Leaden Circles

First a warning, musical; then the hour, irrevocable. The leaden circles dissolved in the air.

My Archives

because the internet is not forever

CineSocialUK

Up to the minute, fair, balanced, informed film reviews.

PUZZLED PAGAN PRESENTS

A Shrine to Pop Culture Obsessiveness. With Lots of Spoilers

Thrilling Days of Yesteryear

“Nostalgia isn’t what it used to be” – Peter DeVries

thedullwoodexperiment

Viewing movies in a different light

Twenty Four Frames

Notes on Film by John Greco

Suzanne's Mom's Blog

Arts, Nature, Good Works, Luna & Stella Lockets & Birthstones

It Doesn't Have To Be Right...

... it just has to sound plausible

NJ Corporate Portrait Photographer Blog

The life of a corporate portrait photographer who likes to shoot just about anything.

arwenaragornstar

A French girl's musings...

Jordan and Eddie (The Movie Guys)

Australian movie blog - like Margaret and David, just a little younger

Octopus Films

A place for new perspectives on films, TV, media and entertainment.

scifist 2.0

A sci-fi movie history in reviews

The Reviewer's Corner

The Sometimes Serious Corner of the Internet for Anime, Manga, and Comic Reviews

First Impressions

Notes on Films and Culture

1,001 Movies Reviewed Before You Die

Where I Review One of the 1,001 Movies You Should Watch Before you Die Every Day

Movies Galore of Milwaukee

Movie Galore takes a look at Silent films on up to current in development projects and gives their own opinion on what really does happen in film!

The Catwing Has Landed

A Writer's Blog About Life and Random Things

mibih.wordpress.com/

Anime - Movies - Wrestling

Gabriel Diego Valdez

Movies and how they change you.

The Horror Incorporated Project

Lurking among the corpses are the body snatchers....plotting their next venture into the graveyard....the blood in your veins will run cold, your spine tingle, as you look into the terror of death in tonight's feature....come along with me into the chamber of horrors, for an excursion through.... Horror Incorporated!

Relatos desde mi ventana

Sentimientos, emociones y reflexiones

Teri again

Finding Me; A site about my life before and after a divorce

unveiled rhythms

Life In Verses

Gareth Roberts

Unorthodox Marketing & Strategy

leeg schrift

Taalarmen

100 Films in a Year

12 months. 100 films. Hopefully.

%d bloggers like this: