Icesave Could Prove Expensive For Iceland

Words by

Published January 11, 2013

The worst case scenario for Iceland, currently in EFTA court over Icesave, could end up costing the country around 400 billion ISK.
For those not already familiar with the story, Icesave was an electronic branch of Landsbanki that promised depositors very lucrative interest rates on their savings accounts. After the economic collapse of October 2008, however, depositors from the Netherlands and Great Britain found themselves unable to withdraw their funds. The matter resulted in a protracted legal battle between the three countries.
A statement from the ESA makes it clear, in no uncertain terms, that Iceland “is obliged to ensure payment of the minimum compensation to Icesave depositors in the United Kingdom and the Netherlands, according to the Deposit Guarantee Directive.” By not allowing foreign depositors to withdraw from Icelandic banks, ESA alleges, Iceland may have violated the terms of its own treaty with EFTA.
DV now reports that things could turn very sour for Iceland, should EFTA court rule that Iceland violated international law in not immediately allowing foreign depositors to withdraw their money.
EFTA court will only rule whether or not Iceland violated the law. If it does rule in this way, it is likely that the UK and Holland while in turn file a suit against Iceland. DV reports that if that happens, damages up to 400 billion ISK (2.3 billion euros) could be awarded to the two countries.
A final ruling on the matter is expected some time this year.



News
<?php the_title(); ?>

Chinese Investors May Buy Part Of Icelandic Bank

by

A group of Chinese investors are currently in negotiations over buying a portion of Islandsbanki, though this is not the first time such negotiations have been reported. Reuters reports that the investors group is comprised of “Chinese bank ICBC, insurer China Life Insurance Company and a large Chinese private equity fund”, an unnamed source from the Ministry of Finance said. Talks are currently ongoing with the bankruptcy estate of Islandsbanki, previously known as Glitnir, on the subject of possibly buying a stake. “It’s pleasing that there is an interest in the bank,” chairperson of the bankruptcy estate Steinunn Guðbjartsdóttir said.

News
<?php the_title(); ?>

Jeep Rolled To Avoid Hitting Sheep

by

Two tourists risked their lives in order to swerve around a sheep that had jumped into the road. Vísir reports that the incident took place in Vatnsnes, northwest Iceland, at about four o’ clock this morning. While traveling on a country road, the two tourists were suddenly faced with a sheep that had bounded into their path. The quick-thinking driver swerved to avoid the sheep, causing one of the front wheels to slam into a roadside ditch. This sent the jeep rolling across the road, eventually coming to a stop on its driver side. The first person on the scene

News
<?php the_title(); ?>

Panda The Cat Shot With Air Rifle

by

Cat owner Vífill Garðarson may need to put his cat Panda down after someone shot him with an air rifle, reports Vísir. Earlier this week Vífill’s neighbour came across Panda lying motionless in his garage and called Vífill to come pick up the cat, but Panda did not run to his owner as he is prone to do. “He just lay there, completely still so I had to pick him up and carry him home,” said Vífill. “When I put him down on the ground again he couldn’t stand up so I rushed him to the veterinary hospital.” Initially the

News
<?php the_title(); ?>

3000 People Attend Gaza “Die In”

by

An estimated 3000 people attended an anti-war “die in” in central Reykjavík yesterday protesting Israeli air raids on Gaza, reports Vísir.  At the protest over 600 people lay down on the ground to represent the recent civilian deaths in the Israeli-Palestinian conflict. Speakers included Reykjavík Mayor Dagur B. Eggertsson and Sveinn Rúnar Hauksson. At the end of the protest participants walked to Iceland’s Government Offices to hand off a memorial wreath with the names of over 600 Palestinian victims written on it. The wreath was given to Iceland’s Prime Minister Sigmundur Davíð Gunnlaugsson. Yesterday Sigmundur confirmed that he had sent an official letter to

News
<?php the_title(); ?>

Wants To Make Iceland “Norway’s 20th County”

by

A group of Icelanders are aiming to have the country brought under the administration of the Norwegian government as “Norway’s 20th county”. The group in question, Fylkisflokkurin (“The County Party”), already has just over 1,200 members at the time of this writing. The group, formed by director of the National Center of Addiction Medicine (SÁÁ) and former Fréttablaðið editor Gunnar Smári Egilsson, purports in their mission statement that they aim for “the re-uninfication of Iceland and Norway”, wherein “the Norwegian government would constitutionally protect and promote Icelandic culture while Icelanders would enjoy all the same rights as Norwegians.” “Iceland is

News
<?php the_title(); ?>

Air Mechanics Sign Collective Bargaining Agreement

by

An ongoing labour dispute that has most directly affected the tourist industry has been resolved. The Air Mechanics Union of Iceland (FVFÍ) has signed a collective bargaining agreement with Icelandair ehf., Vísir reports. The new contract will be in effect until August 31, 2017. As reported, air mechanics have over the summer pushed for higher wages and better working conditions, culminating in temporary work shut-downs. While some of these work stoppages lasted no more than a few hours, this was enough to prompt the cancellation of flights during the height of tourist season. Interior Minister Hanna Birna Kristjánsdóttir proposed passing

Show Me More!