From Iceland — EFTA: Iceland Should Pay All of Icesave Debt

EFTA: Iceland Should Pay All of Icesave Debt

Published May 26, 2010

The supervisory commission of the European Free Trade Association (EFTA) has come to a conclusion with regards to Icesave: Iceland must pay the minimum insured deposit of every single person who paid into the internet bank.
Icelandic authorities have received the notice from the EFTA already, giving their opinion that Iceland should pay each depositor the minimum 20,000 euros (provided they invested 20,000 euros or more of course). The EFTA believes the Icelandic economy can well handle paying this amount.
Per Sanderud, president of the EFTA Supervision Authority, argues in his statement that laws are there to protect depositors, and that when banks break their end of a bargain, depositors should be able to exercise their rights.
Iceland has two months to respond to the letter. After this time, the EFTA will explore other options in pressuring Iceland to pay up.
Talks between Iceland, the UK and Holland have been on hold, as parliamentary elections in the UK have only recently passed, and elections in Holland are still on the way.
Minister of Business Gylfi Magnússon told Vísir that the finding is significant, and will certainly have an effect on negotiations with Britain and Holland. He remains hopeful, however, that an agreement between the three countries can be reached that will be gentler on Iceland’s already strained treasury.

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