ECB hints Brian Lenihan letter will be released

Fine Gael MEP Sean Kelly is confident that the ECB will publish the controversial letter sent to former finance minister Brian Lenihan the night before Ireland entered the bailout.

Mr Kelly said he had spoken to the director general of the ECB secretariat, Pierre van der Hagen, today. He renewed his appeal for the letter to be released after the banking stress test results were announced.

"They are having a Council meeting on November 6th and will discuss the release of the letter at that meeting. I would expected from indications I've got that they will be releasing it shortly after that," Mr Kelly told the Irish Times this morning.

Fianna Fáil finance spokesman Michael McGrath has also said this morning he would welcome the publication of the letter.

Mr McGrath, who is a member of the banking inquiry, said the inquiry would make a formal request for the letter shortly and would seek extensive documentation from the ECB.

“I think the continued withholding of that letter...really has become quite unsustainable and I think the ECB knows that,” Mr McGrath said.

“Anything that enhances our understanding of the circumstances which led Ireland into entering a formal programme of assistance is worthwhile and should be put into the public domain,” he told RTÉ’s Morning Ireland.

Asked about a report in this morning’s Irish Examiner that the banks will be asked to make a contribution to the inquiry into their behaviour, Mr McGrath said he would welcome an initiative to pass at least some of the costs of the inquiry onto the financial institutions.

“After all, it is going to be an inquiry into the banking crisis. The banks are the principal actors in that along with others of course.”

Seeking to recoup some of the costs would be sensible and logical, he added.

The ECB has previously refused to release the letter to Mr Lenihan from November 2010 which many suspect forced the government into accepting the terms of the bailout.

The European ombudsman, Emily O’Reilly, has advocated the release of the letter.