Iceland Agreement with IMF

Posted 16/11/2008 - 19:49 by gazfuk

2008-11-16 (All day)

Iceland agrees deal for foreign savers
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REYKJAVIK (Reuters) – Iceland said on Sunday it had agreed with several European Union states how to repay thousands of foreign savers with money in frozen Icelandic accounts, potentially unlocking billions of dollars in aid.

Conflicts over the accounts between Iceland, not a member of the EU, and Britain and the Netherlands have been delaying loans for Iceland from the International Monetary Fund (IMF) and other lenders.

"According to the agreed guidelines, the government of Iceland will cover deposits of insured depositors in the Icesave accounts in accordance with EEA (European Economic Area) law," the Icelandic government said in a statement.

"They also entail that the EU, under the French Presidency, will continue to participate in finding arrangements that will allow Iceland to restore its financial system and economy."

There had been signs of a thaw when IMF Managing Director Dominique Strauss-Kahn told a news conference in Washington the lender would finalize a rescue package for Iceland on November 19.

Iceland faces a severe recession after the global financial crisis led to the collapse of its currency and the government takeover of three of its largest banks. It badly needs funds to help revive currency trade and restart the economy.

It reached a provisional deal for a $2 billion IMF lifeline in October and other lenders, including the EU, had indicated they might be willing to stump up cash once the IMF program won official approval.

But Britain and the Netherlands have been frustrated by the situation for savers in their countries who had deposited money in the "Icesave" accounts of Landsbanki, one of the banks that crumbled during Iceland's financial meltdown.

Iceland said the current EU president France had initiated the talks over the Icesave conflict.

The agreement to offer Icesave depositors the protection of EEA laws "will allow for the expeditious finalization of negotiations under way concerning financial assistance for Iceland, including the IMF," the statement added.

(Reporting by Omar Valdimarsson)

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MF to complete Iceland rescue program Wednesday

Posted 16/11/2008 - 00:46 by steveejeb

2008-11-16 (All day)

WASHINGTON (Reuters) - The International Monetary Fund expects to complete a financial rescue package for Iceland next week, IMF Managing Director Dominique Strauss-Kahn said on Saturday.

"We will complete a program with Iceland next Wednesday," Strauss-Kahn told a news conference after leaders of the Group of 20 advanced and emerging economies met in Washington.

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Kaupthing says hopes to pay back German clients soon

Posted 14/11/2008 - 00:44 by steveejeb

2008-11-13 (All day)

Iceland's bank Kaupthing, which was taken over by the Icelandic state last month, said on Thursday it hoped to pay back customers of its German operations in the next few days or weeks.

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Iceland's application for a $2 billion loan had been postponed until November 10 from this week.

Posted 06/11/2008 - 22:56 by steveejeb

2008-11-06 (All day)

Prime Minister Geir Haarde told Icelandic radio a meeting of the board of the International Monetary Fund to consider Iceland's application for a $2 billion loan had been postponed until November 10 from this week.
Haarde said in this was to give Iceland more time to finalize other loans which are to be part of the IMF deal.The prime minister also said Britain and the Netherlands wanted to make the IMF loan conditional on a settlement of refunds for depositors of failed Landsbanki's Icesave bank.

"We do not accept that our cooperation with International Monetary Fund and the unfortunate Icesave affair be tied together," Haarde said in the interview.

"The Fund's director has asserted that our application will be treated in a normal fashion and according to the rules. I am confident that will be the case."

Britain's finance ministry and its Dutch counterpart declined to comment.

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"I think the IMF and the Nordic countries will present a joint package by tomorrow night." - Iceland

Posted 06/11/2008 - 16:56 by steveejeb

2008-11-06 (All day)

Key to restoring faith in the krona will be money from the IMF and a further $4 billion Iceland has said it is seeking from other lenders. "We are awaiting the loan deal with the IMF and the Nordic countries," said Carl Hammer, foreign exchange strategist at SEB. "Focus is then on what measures and conditions it will contain. I think the IMF and the Nordic countries will present a joint package by tomorrow night."

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Auction sets Kaupthing sub CDS payout at 97.625%

Posted 06/11/2008 - 16:23 by steveejeb

2008-11-06 (All day)

LONDON, Nov 6 (Reuters) - Sellers of protection on Icelandic bank Kaupthing (KAUP.IC: Quote, Profile, Research, Stock Buzz) will have to pay out 97.625 percent of the subordinated debt they agreed to cover after an auction on Thursday set the value of the credit default swaps.

The final value of the contracts on subordinated debt will be 2.375 percent, according to results published by auction administrators Creditex and Markit.

Earlier in the day, the payout for Kaupthing senior debt was set at 6.625 percent.

The Depository Trust & Clearing Corp. has calculated gross notional value of outstanding Kaupthing CDS contracts at $34.3 billion and the net value at $3.8 billion after taking into account offsetting positions.

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Iceland says it is talking to EU about loan

2008-11-01 (All day)

REYKJAVIK, Oct 31 (Reuters) - European Union outsider Iceland is talking to the EU about a possible loan from the bloc's crisis fund, a spokeswoman for the island's prime minister said on Friday
"It is now in the hands of the (European) Commission and then it will go through the European Parliament"
"The origins (of the EU loan discussion) are probably in that I wrote a letter to French President Sarkozy earlier this month to explain the situation," Haarde told the Web site.

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Would the real Gordon Brown please stand up? - A Good Reference Point

2008-10-31 (All day)

European officials are rubbing their eyes in disbelief as the prime minister basks in international admiration as the saviour of the global banking system and an apostle of cross-border financial supervision. Is this the same man who in 10 years as Chancellor resisted almost every effort at European Union level or in the Group of Seven major economies to push for stronger financial regulation.

Can this be the leader whose government is still fighting to kill a requirement proposed by the European Commission for banks to hold a 5 percent slice of risky securitised loans they sell?He did not mention Britain by name, but EU officials said it was an open secret that Brown had consistently blocked any European legislation he thought might inhibit the attractiveness of the City of London as a financial centre.

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Iceland bank CDS volumes around $71 bln

2008-10-28 (All day)

NEW YORK, Oct 27 (Reuters) - Around $71 billion in credit default swaps on defaulted Icelandic banks Glitnir, Kaupthing and Landsbanki will be settled in auctions next week, according to the Depository Trust & Clearing Corp, which clears the majority of trades in the credit derivative market.

Credit default swap volumes of $19.2 billion are outstanding on Landsbanki, while Glitnir and Kaupthing have $18.5 billion and $34.3 billion, respectively, the DTCC said.

An auction to settle contracts on Landsbanki's debt is scheduled for Nov. 4, followed by Glitnir on Nov. 5 and Kaupthing on Nov. 6.

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Brown calls for more money for IMF

Posted 28/10/2008 - 14:11 by steveejeb

2008-10-28 (All day)

"The IMF has said it has $250 billion available, and new instruments, to lend to countries in crisis, but this may not be enough," Brown told reporters in London ahead of talks later on Tuesday with French President Nicolas Sarkozy.

"We will consider the necessary reforms to the International Monetary Fund in the weeks ahead." World leaders are holding a summit in Washington on Nov. 15 to discuss ways of reforming the global financial system.

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