From Iceland — Business Committee Chairperson Wants IMF Out of Iceland

Business Committee Chairperson Wants IMF Out of Iceland

Published August 23, 2010

Leftist-Green MP and Business Committee chairperson Lilja Mósesdóttir believes the time has come for the International Monetary Fund (IMF) to leave Iceland.
Speaking on the morning radio show Útvarps Saga, Lilja told the host that the Central bank now has an emergency reserve of 700 billion ISK, as was the initial plan when the IMF first came to Iceland shortly after the economic collapse. For this reason, Iceland has no more use for the IMF, and she would like to see them leave by 30 November, in accordance with the original plan.
She added as well that she doesn’t believe Icesave should be paid through tax money. Despite the fact that the IMF has asked Iceland to come up with a solution to the Icesave debacle by this fall, she told the host of the radio show that her committee had received a legal opinion that Iceland as a nation has no more responsibility for Landsbanki defaulting on deposits, beyond that which is in Landsbanki’s deposit insurance fund.
Lilja added furthermore that for Iceland to pay back Icesave through taxes would radically change Iceland’s social landscape, where the healthcare system would be more like America’s (read: privatized), and would cause serious damage to the social system. This, in turn, could lead to a massive migration from the country.

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