Breaking News: Landsbanki Legally Bound To Pay Icesave

Published October 28, 2011

A decision handed down by the Supreme Court has ruled that the so-called “emergency law” stands, meaning that the assets of Old Landsbanki will be used to pay off the Icesave debt.
In essence, the emergency law gave a preferential position to deposits when paying out of the former Landsbanki. In the various solutions to the Icesave matter that have arisen, that Landsbanki – of which Icesave was an online branch – pay the bulk if not all of the money owed has been argued strongly, both within the government and by those who objected to previous Icesave agreements.
Today, the Supreme Court has ruled that Landsbanki has the assets to pay the Icesave debt. This equals up to 21,000 euros for each Icesave account. The ruling is binding and cannot be appealed.
At a press conference held just minutes ago, the Landsbanki resolution committee explained the matter for the press. They emphasised that they could not give an exact date for when paying back Icesave will begin, as there are “many technical matters to go over”. However, they did see that they will present a general plan of payment by 17 November.
As has come up previously, Iceland has been looking at the possibility of going before EFTA court over Icesave. The resolution committee said that should EFTA move forward with this, Landsbanki will not be a defendant; that would be the Icelandic government.
A statement from the prime minister’s office welcomes the decision of the Supreme Court.



News
East Iceland Airlines Possibly Returning This Summer

East Iceland Airlines Possibly Returning This Summer

by

East Iceland Airlines (Flugfélag Austurlands) aims to start flying across the country by this summer. RÚV reports that one of

News
Presidential Race: Guðni Still Way Ahead, Davíð Still Far Behind

Presidential Race: Guðni Still Way Ahead, Davíð Still Far Behind

by

A new poll shows historian Guðni Th. Jóhannesson still very far ahead of Morgunblaðið co-editor Davíð Oddsson in their bid

News
Government Agrees To Accept More Refugees

Government Agrees To Accept More Refugees

by

The Icelandic government has just agreed to accept another group of Syrian refugees from Lebanon, who are due to arrive

News
State Prosecutor Wants Authority To Wiretap Government Officials

State Prosecutor Wants Authority To Wiretap Government Officials

by

Legislative changes are needed to give the State Prosecutor the authority to wiretap government officials suspected of bribery. RÚV reports

News
Outpouring Of Support Saves Astronomy Website From Bankruptcy

Outpouring Of Support Saves Astronomy Website From Bankruptcy

by

Iceland’s premier astronomy website was saved from bankruptcy within hours after news of its financial struggles was announced. As reported,

News
Finance Minister Contradicts Former PM On Early Elections

Finance Minister Contradicts Former PM On Early Elections

by

The Minister of Finance says there absolutely will be elections this autumn – provided parliament meets certain conditions. Social Democrat

Show Me More!