From Iceland — New Icesave Proposal Reached

New Icesave Proposal Reached

Published February 12, 2010

Iceland’s ruling coalition and opposition, under the supervision of foreign advisors, have reached an agreement on a new proposal for British and Dutch authorities: rather than pay interest on Icesave, they will re-pay it faster. RÚV reports that the proposal could save the Icelandic government billions of crowns if accepted.
The agreement is a milestone of sorts after weeks of negotiations between the ruling coalition and opposition parties. Recently, those talks have come under the advisement of US law professor Lee Bucheit and former OECD chairman Don Johnston.
The new proposal, to be introduced to British and Dutch authorities next week, is that rather than pay interest on the money owed to Icesave depositors, that the full amount would be paid faster directly from Landsbanki. If accepted, this would save the Icelandic government 130 billion ISK, and would put money in the hands of British and Dutch authorities with greater speed.
Minister of Finance Steingrímur J. Sigfússon would not comment to reporters further on the proposal until he has had a chance to bring the matter before British and Dutch authorities after the weekend.
Earlier this week, Minister of Foreign Affairs Össur Skarphéðinsson told reporters that he believes the chances are good that British and Dutch authorities will come back to the negotiations table with regards to Icesave.

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