Iceland moves on capital controls, to tax money outflows

Posted 08/06/2015 - 16:18 by anrigaut

2015-06-07 23

Iceland said on Monday it would impose a 39 percent tax on creditors wanting to take assets reclaimed from its failed banks out of the country, a first step to lifting capital controls that have been in place since its 2008 crash.

The government hopes the tax will prevent a sudden exodus of capital that could crush the crown currency and hurt the economy as it recovers from the spectacular collapse of the North Atlantic island's bloated banking sector seven years ago.

But creditors with billions of dollars worth of assets frozen in three bankrupt lenders could launch legal proceedings against the country, risking years of action that would keep Iceland locked out of international markets.

The government said investors in Icelandic assets such as government bonds could also get their money out of the country by selling crowns to the central bank. Alternatively, they could reinvest their capital in newer government debt that will be convertible out of crowns at maturity.

Because the central bank controls the exchange rate, investors using its currency auctions to repatriate their money could get a less favourable price for their crowns than in the currency markets.

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Iceland convicts bad bankers and says other nations can act

Posted 13/02/2015 - 10:21 by anrigaut

2015-02-13 (All day)

Iceland's Supreme Court has upheld convictions of market manipulation for four former executives of the failed Kaupthing bank in a landmark case that the country's special prosecutor said showed it was possible to crack down on fraudulent bankers.

Hreidar Mar Sigurdsson, Kaupthing's former chief executive, former chairman Sigurdur Einarsson, former CEO of Kaupthing Luxembourg Magnus Gudmundsson, and Olafur Olafsson, the bank's second largest shareholder at the time, were all sentenced on Thursday to between four and five and a half years.

The verdict is the heaviest for financial fraud in Iceland's history, local media said. Kaupthing collapsed under heavy debts after the 2008 financial crisis and the four former executives now live abroad. Though they sometimes returned to Iceland to collaborate with the court investigation, none were present on Thursday.

Iceland's government appointed a special prosecutor to investigate its bankers after the world's financial systems were rocked by the discovery of huge debts and widespread poor corporate governance. He said Thursday's ruling was a signal to countries slow to pursue similar cases that no individual was too big to be prosecuted.

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Iceland's banks to come back from the dead

Posted 18/04/2014 - 09:38 by anrigaut

2014-04-16 23

Iceland's Arion Banki is to provide an even greater test of investor appetite for risky banks than recent deals from Greece as it plots its first wholesale market funding in a major currency in six years.

The bank was formerly known as Kaupthing Bank, a name that triggers memories of bank failures, burnt bondholders and legal wrangling. ...

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Grant Thornton pair lose disclosure battle in Tchenguiz UK lawsuit

Posted 20/02/2014 - 20:12 by anrigaut

2014-02-20 (All day)

Two senior employees of UK auditor Grant Thornton, named in a legal battle between the Tchenguiz brothers and the Serious Fraud Office, have lost an appeal against a court order forcing them to hand over sensitive documents to the property moguls.

Grant Thornton was dragged into the spotlight in 2011 by Vincent and Robert Tchenguiz, who have brought a record 300 million pound ($500 million) damages claim against the SFO over a botched investigation into the circumstances surrounding the collapse of Icelandic bank Kaupthing in 2008. ...

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Iceland cold-shouldered as crisis countries rebound

Posted 18/01/2014 - 09:44 by anrigaut

2014-01-17 (All day)

As fresh money pours back into crisis-hit countries including Ireland, Portugal and even Greece, Iceland remains frozen out of international capital markets as its government remains locked in a battle with creditors over pre-crisis borrowings. ...

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Iceland's debt talks slow, onus on 'cosy' creditors: PM

Posted 30/10/2013 - 19:33 by anrigaut

2013-10-30 (All day)

Iceland's negotiations with the creditors of its failed banks are going much slower than expected and it could still take years before a deal is struck and capital controls can be lifted, Prime Minister Sigmundur Gunnlaugsson said.

Showing his frustration at the intractable nature of talks that are now "hindering investment and growth", he told Reuters "creditors in Iceland have been kept warm in a cosy situation". ...

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UK's SFO may back down on "suspect" Tchenguiz

Posted 22/05/2012 - 20:13 by anrigaut

2012-05-21 23

"Britain's embattled Serious Fraud Office faces further humiliation over its bungled investigation of property tycoon Vincent Tchenguiz, after saying it will urgently review his status as a suspect. ... "

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Iceland clinches Icesave deal with Dutch, UK

Posted 09/12/2010 - 18:25 by VikingRaider

2010-12-09 08

The Dutch Finance Ministry said on Thursday that Iceland, Britain and the Netherlands had reached a deal on repayment of about $5 billion owed by Iceland to the other two countries for deposits from failed bank Icesave.

Iceland will pay a fixed interest rate of 3.0 percent on the money it owes to the Netherlands, and will pay a rate of 3.3 percent on the money owed to Britain, the Dutch Finance Ministry said in a statement.

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Glitnir creditors take over 95 pct of Islandsbanki

2009-10-14 23

Iceland has agreed to hand creditors of failed bank Glitnir a 95 percent stake in smaller lender Islandsbanki in payment for losses suffered in last year's banking sector collapse.

Iceland's top commercial banks were brought down by the global financial crisis last October, plunging the Icelandic economy into deep recession and forcing the nation to seek billions of dollars in aid from the International Monetary Fund and other lenders.

Iceland's three biggest banks -- Glitnir, Landsbanki and Kaupthing -- folded within a week a year ago this month, owing more than $60 billion to foreign lenders, and both Landsbanki and Kaupthing have yet to reach agreements with their creditors.

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Further hope....... Iceland to repay UK for lost savings

Posted 07/06/2009 - 10:22 by horace

2009-06-05 23

Although no direct reference to KSFIOM, there seems to be positive political and diplomatic progress. However we need to keeping things in perspective and maintain our campaign to recover 100% of our deposits

Quote from the article 'Under the new deal, the Iceland Compensation Scheme will make payments over 15 years, with an initial 7-year grace period.'

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