Iceland stares into Icesave abyss

[Bugs ****ing Bunny]

Because their government agreed to the loan terms last August. Then tried to change the terms after accepting the loan, and now is going to a referendum as to whether they repay the loan at all.

This is on top of the IMF aid, and the EU application. If Iceland is screaming for help from other nations, it can't try ripping off its creditors.

[KrazyHorse]

Why don't you get off your lazy ass and read the Wikipedia page on this subject?

[germanos]

As far as I have understood the situation is as follows:

Iceland is part of some sort of European Economic Zone (No, not the EU). Subsequently Icelandic banks can do business in other memberstates as long as they have a licence from the Icelandic Central Bank. Icesave had such a licence. The central bank guarantees deposits at such licenced banks up to 20K euro (per person (or account?) in case of a collapse of the bank.

When mayham started in the US leading to the credit crisis, The Dutch Finance Department increased the guarantee to 100K euro because they feared people would withdraw their savings from any Bank in the Netherlands. When Icesave fell, the Netherlands (apparently together with the UK) negotiated with the Icelandic parliament a deal that their Central Bank would cover the extra 80K.

Soon the Icelandic government collapsed, leading to new elections and the new parliament now wants to cancel the deal.

[OzzyKP]

Nono, the dutch are innocent - though the brits :

http://en.wikipedia.org/wiki/Cod_Wars

Edit: No offense, but you seem to grow into a typical yankiee that doesn't know about the rest of the world

You silly Dane. When you say Cod War, I think Danny Williams.

It is just like an American to be so conceited that he thinks everyone is should be familiar with the things that interest him.

I love how the Danes and the Canucks are slandering each other by accusing the other of American-ness.

[Wezil]

I love how the Danes and the Canucks are slandering each other by accusing the other of American-ness.

Obviously we agree on something.

[Theben]

As an American, even I knew about the Cod wars. Silly Canucks.

[MrFun]

As an American, even I knew about the Cod wars. Silly Canucks.

So you're a geek.

[DanS]

Why don't you get off your lazy ass and read the Wikipedia page on this subject?

Is this directed at NYE or BFB?

[Kidlicious]

Tulsa, Oklahoma is bigger than Iceland.

[Dauphin]

The fraud is far more interesting than the default.

[notyoueither]

Is there anything you can share?

[notyoueither]

Because their government agreed to the loan terms last August. Then tried to change the terms after accepting the loan, and now is going to a referendum as to whether they repay the loan at all.

This is on top of the IMF aid, and the EU application. If Iceland is screaming for help from other nations, it can't try ripping off its creditors.

You mean the loans from the Netherlands and the UK that were used to reimburse depositors in those countries?

Those are a bit dodgy, aren't they?

[Dauphin]

Not really. Sorry.

This is public information though:

http://www.ft.com/cms/s/0/683b2926-17fb-11df-91d2-00144feab49a.html

An internal Kaupthing credit report leaked on the internet last year laid bare the kind of questionable lending practices and business connections under investigation by Mr Hauksson’s team.

It showed that much of the bank’s lending went to its own biggest shareholders and a select group of favoured clients – often with little or no security. Investigators are probing whether some of the loans were reinvested in the bank to pump up its share price.

http://www.ft.com/cms/s/0/86df95d2-82ba-11de-ab4a-00144feabdc0.html?nclick_check=1

Foreign hedge funds were initially blamed by many Icelanders for bringing the country to its knees, but Vilhjalmur Bjarnason, director of the Iceland Shareholders Association, says the evidence increasingly suggests home-grown culprits. “We did not need hedge funds to bring the system down. The insiders did at least as much damage,” he says.

[notyoueither]

Ta.

[KrazyHorse]

Is this directed at NYE or BFB?

NYE