News Irish News

Saturday 23 September 2017

TIMELINE HOW THE BAILOUT HAPPENED

JULY 2010

Patrick Honohan makes ECB aware that Irish banks would not rollover in September which would leave Anglo and potentially others dependent on Central Bank's Emergency Liquidity Assistance (ELA).

LATE AUGUST

Nama valuations begin to reveal the scale of prospective bank losses. International lenders started paying attention to Ireland.

SEPTEMBER

Brian Lenihan had known that September would be a difficult month as four-year bank guarantee runs out.

EARLY OCTOBER

At the IMF Annual Meeting, planning for a possible Irish funding application is in progress. Lenihan inquires what conditions might be attached for Ireland

18th OCTOBER

Merkel and Sarkozy, below, announce from their summit in Deauville that holders of European Government debt must contribute to any bailouts. Interest rates on Irish Government debts soar

THURS 4th NOVEMBER

As budgetary plan outlines are announced, advisors tell Brian Lenihan that it's time to talk to the Troika.

SUNDAY 14th NOVEMBER

Informal discussions are held with Troika in Brussels. Almost all of the 17-strong Irish team attend led by Dept of Finance.

TUESDAY 16th NOVEMBER

Lenihan comes under pressure from fellow ministers at a Eurogroup meeting to formally apply for a bailout.

WEDNESDAY 17th NOVEMBER

Patrick Honohan calls Lenihan to tell him the ECB wanted Ireland to apply for a bailout to steady financial markets, he gets a cross response.

THURSDAY 18th NOVEMBER

The editorial in the Financial Times speaks of a bank run in Ireland. Patrick Honohan is interviewed about a possible bailout on RTE's Morning Ireland radio programme.

FRIDAY 19th NOVEMBER

The ECB writes to Brian Lenihan warning that continued emergency lending by the Central Bank to Irish Banks could not be assured unless Ireland made an application.

SUNDAY 21st November

Cabinet decide to apply to EU for financial assistance. Brian Lenihan flies out to Brussels.

FRIDAY 26th NOVEMBER

Troika tell Brian Lenihan that burning the bondholders could not be countenanced.

Sunday Independent

Editor's Choice

Also in Irish News