Request help from the IMF

  • Jackie
  • 30/10/08 27/12/09
  • a depositor
  • Offline
Posted: Sun, 27/09/2009 - 08:34

It seems to me that the sensible solution would be to request the IMF to make an investigation into the events which led to the demise of KSFIOM and then to organise full compensation to the creditors. If the UK, the IOM and Iceland cannot afford to pay out their rightful portions at this time then it should be arranged by the IMF to lend them the funds. The economic situation will improve and these governments will recover in the long run. Surely the Isle of Man needs to salvage it's banking reputation as does Iceland. Can't we put this request through Edwin Coe as, forgive me if I am wrong, isn't the IMF the ultimate authority in solving international financial matters? Also the IMF should be working on the parental guarantee with Iceland.

When the markets recover it will be very difficult for Iceland and the Isle of Man to gain back their reputations ... we as a team, will certainly not allow the public to forget what happened here for many years to come I hope.

What the IMF Does
The work of the IMF is of three main types. Surveillance involves the monitoring of economic and financial developments, and the provision of policy advice, aimed especially at crisis-prevention. The IMF also lends to countries with balance of payments difficulties, to provide temporary financing and to support policies aimed at correcting the underlying problems; loans to low-income countries are also aimed especially at poverty reduction. Third, the IMF provides countries with technical assistance and training in its areas of expertise. Supporting all three of these activities is IMF work in economic research and statistics.

In recent years, as part of its efforts to strengthen the international financial system, and to enhance its effectiveness at preventing and resolving crises, the IMF has applied both its surveillance and technical assistance work to the development of standards and codes of good practice in its areas of responsibility, and to the strengthening of financial sectors.

The IMF also plays an important role in the fight against money-laundering and terrorism. Weren't anti-terrorrist measures unnecessarily implemented in this case?
Has anyone any suggestions?

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do you remember - we all sent e-mails to IMF or World Bank?

  • sabi Star
  • 10/10/08 n/a (free)
  • unspecified
  • Offline
  • Wed, 30/09/2009 - 12:12

I recall we all sent loads of e-mails and letters to either IMF or World Bank a long time ago - probably Dec., Jan. or Feb. - I can remember doing it myself - but nothing seemed to come of it. I was trying to bring up some posts from then about it but have not been able to find them.

Original letter/email sent to IMF

  • glen07
  • 21/10/08 n/a (free)
  • a depositor
  • Offline
  • Sat, 03/10/2009 - 06:15

I think this is the letter/email that we all tried to send to IMF ( worth sending more?):-

"This was a letter composed by bblair and sent out by other members here to the IMF a couple of weeks ago. Please feel free to copy it and send to the IMF.

Another e-mail address for them is:

publicaffairs(?)imf [dot] org

Dear Sir / Madame,

I am a depositor in the Isle of Man subsidiary of the Icelandic bank called Kaupthing hf. I am also a member of the KSF(IoM) Action Group - a group of depositors who's have been financially ruined by Kaupthing's recent demise.

It is my understanding that the IMF is currently negotiating a loan package with the government of Iceland to help stabilize its financial system, strengthen its currency and provide for adequate foreign currency reserves. First let me say that I applaud this initiative and wish only the speediest recovery for the Icelandic economy.

However, as you may know, a consequence of Iceland's collapse is that its three major banks have failed - its foreign subsidiaries ringfenced or taken into administration outside of Iceland and the parent banks have been nationalized. The approach to these nationalizations has given great cause for concern among each banks' international depositors and creditors. In general it appears that the banks assets and operations have been absorbed by "new" entities and these new banks are failing to honor the obligations of the old banks which are now defaulting on foreign bonds, deposits and deposit guarantees.

As much as I and, I am sure, my fellow depositors with Kaupthing Singer & Friedlander (IOM) wish only the very best for Iceland's future financial well-being, I think it is only fair to ask that the IMF attach conditions to its financial aid package that provide for the satisfaction of its international obligations and parental guarantees.

Can you please provide me with some assurance that Iceland's aggressive nationalization efforts and the resulting injury to foreign depositors and creditors will not be condoned by the IMF's unconditional support in this regard? Many of my fellow depositors have lost their entire life savings and are financially ruined - please tell me that the IMF is not expecting these individuals to be sacrificed while Iceland is restored to financial health.

I look forward to your kind attention to this matter.