International will in IMF support of Iceland

Posted 15/01/2010 - 11:55 by glen07

2010-01-13 13

Dominique Strauss-Kahn, President of the IMF, said this evening that: “If many countries in the international community feel that we should wait with our review of our recovery package for Iceland, then we must do that”.

Strauss-Kahn said this at a Washington press conference today. He said he understands the anger of the people in Iceland because of the huge debts they are left with following the banking collapse. He reiterated that an Icesave deal is not essential for continued IMF assistance; but that Icelanders have to understand the IMF is controlled by the international community and must listen to its will. He added though, that the IMF is no country’s personal debt collection agency.

The IMF itself relies on international co-operation just the same as Iceland now does, Strauss-Kahn told the press conference.

At the beginning of the meeting, Strauss-Kahn took the opportunity to send his condolences to the victims of the Haiti earthquake and said the Fund will shortly be sending USD 100 million to the crisis-struck country with further assistance to follow.

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Icesave bill narrowly passed by Icelandic government. Third IMF instalment of loan to Iceland.

Posted 01/01/2010 - 09:28 by glen07

2009-12-30 13

Thursday, December 31, 2009
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Iceland approves $6bn Icesave deal
Icesave was an online subsidiary of the Landsbanki bank which had to be rescued in October 2008

Iceland's parliament has approved a controversial payout of nearly $6bn to Britain and the Netherlands, which had compensated tens of thousands of savers who had money with a failed Icelandic bank.

Politicians approved the measure by a vote of 33 to 30 but Olafur Ragnar Grimsson, the country's president, indicated on Thursday that he wanted more time to study the controversial legislation before signing it.

The measure provides $3.8bn to the UK and $1.9bn to the Netherlands from 2016 to repay expenditures to compensate citizens who lost money in the collapse of Icesave.

Grimsson's approval is required before the legislation becomes law, otherwise the legislation will be put to a national referendum.

EU factor

The payout has stirred up considerable resentment among many ordinary Icelanders hard hit by their country's financial meltdown in 2008.

"Treason!" cried out one opposition politician after the announcement that the bill had passed, while a politician from the governing leftist coalition shouted "Congratulations, Iceland!".

Icesave was an online subsidiary of the Landsbanki bank that had to be rescued in October 2008 as the global credit crunch hit.

It had attracted thousands of savers due to its high interest rates.

The British and Dutch governments turned to Reykjavik for the money to be returned, and an initial compensation deal was approved by Iceland's parliament in August.

But amendments negotiated by Johanna Sigurdardottir, the country's Social Democratic prime minister, in order to get the deal through parliament, were rejected by Britain and the Netherlands.

The dispute threatened to sink Iceland's efforts to quickly join the European Union, forcing Sigurdardottir to return to parliament with a new bill in line with the initial deal.

'Shameful' handling

The measure adopted late on Wednesday foresees staggering through to 2024 the payment of the $5.7bn, which is equivalent to nearly 40 per cent of the country's annual gross domestic product.

A poll taken in August suggested nearly 70 per cent of Icelanders were against the Icesave deal, the compensation amounting to about $17,000 for each citizen on the island nation of 320,000 people.

"History will show that we are doing the right thing," Steingrimur Sigfusson, the country's finance minister, said after the vote.

But Birkir Jon Jonsson, deputy leader of the opposition Progressive Party, said: "How this government has handled this issue has been shameful from the beginning."

A petition asking Grimsson to veto the measure has already garnered nearly 40,000 signatures, a record in Iceland.

Grimsson indicated he would meet members of InDefence, which opposes compensation, before making a decision.

The dispute over the compensation scheme had also delayed the disbursement of funds under of a $2.1bn IMF standby loan arranged in November 2008 following the collapse of Icelandic banks.

The IMF announced on December 14 it had reached an agreement with Iceland on the release of a third tranche of the loan.

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Eva Joly: Iceland is being blackmailed

2009-11-14 13

Eva Joly's take on the lessons to be learned from the collapse of the Icelandic Banks

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IMF says yes in Iceland loan review

Posted 30/10/2009 - 05:44 by glen07

2009-10-29 13

Looks like they got their money. Maybe give us what you owe us?

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IMF board to discuss Iceland loan Oct. 28

2009-10-21 23

The International Monetary Fund said on Wednesday its board would review a delayed stand-by loan arrangement for Iceland on Oct. 28, which would free up about $167.4 million in funds

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Iceland’s parliament may demand the government abandon its International Monetary Fund economic program and forgo further loan payments after the IMF delayed a review of the program for eight months.

Posted 08/10/2009 - 21:01 by Alastair

2009-10-06 23

Discussion regarding the Icelandic Government considering walking away from the IMF loans due to the links the IMF placed on the loans with the Icesave negotiations with the UK and Dutch Gov'ts. Less than 20% ($827 of $4.6bln) of the IMF loan has been paid out to Iceland so far and the rest is under review.

If Iceland walks away from the IMF it is considered unlikely they would have any change with EU membership.

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Well, well, well.....Please read "Icelandic Investigations"

Posted 07/10/2009 - 12:23 by glen07

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Please everybody read Expat's blog - Icelandic Investigatons. Seems there's dirt up dare in dem Icelandic hills!!!!!!

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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Negotiations with the British and Dutch governments over repayment of the $5.8 billion still owed in respect of Landsbanki’s Icesave depositors are deadlocked.

Posted 05/05/2009 - 19:35 by follow_the_tao

2009-04-30 03

This paragraph is included in a article nominally on Iceland and the EU:

"The government has yet to finalise all of the terms of its $2.1 billion loan from the IMF, pending an audit of the banks and its own budget. Negotiations with the British and Dutch governments over repayment of the $5.8 billion still owed in respect of Landsbanki’s Icesave depositors are deadlocked. The projected debt from the IMF and Scandinavian rescues, combined with Icesave’s obligations, will exceed $11.1 billion, roughly equal to Iceland’s GDP in 2007. So the budget, when finally presented, is likely to contain some swingeing spending cuts and tax rises."

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IMF report does address KSF (Isle of Man) affair

Posted 31/01/2009 - 10:27 by Bill

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steveejb has posted the report by - it contains this paragraph:

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