As reported yesterday, a deal between Iceland and the International Monetary Fund is reported to be near conclusion.
The deal is suspected to centre on a USD 6 billion loan to Iceland from the IMF and Nordic and Japanese central banks, intended to help the country out of its current economic situation.
Icelandic Prime Minister Geir H. Haarde said after a cabinet meeting this morning that the deal has not yet been completed. Government sources say they hope an announcement will be given later today or tomorrow.
Good news. However, if David Oddsson is allowed to stay at the helm of the central bank, and inflict even more damage on Iceland’s economy, this won’t help:
“The Central Bank granted loans to financial companies in exchange for collateral in stocks and around ISK 300 billion thereof was backed with unprotected stocks in Iceland’s three largest commercial banks, Glitnir, Landsbanki and Kaupthing, which have now been nationalized. After the nationalization process, their stocks dropped considerably in value.
The financial companies in question are, according to Morgunbladid’s sources, Sparisjódabankinn (SPB, formerly known as Icebank), Askar Capital, Saga Capital, VBS, SPRON and Straumur. The companies have requested time until tomorrow to provide collateral for the Central Bank.
“We will meet with the representatives of the Central Bank and the government,” said CEO of SPB Agnar Hansson. If the financial companies are unable to meet the demands of the Central Bank, it may have to write off ISK dozens or hundreds of billions.”
http://www.icelandreview.com/icelandreview/daily_news/?cat_id=16539&ew_0_a_id=314005
Sound slike a good plan to me – to ruin all those banks that still managed to survive.
Oddsson = failure!
The IMF loan will help for a little while. At least there will be food imports. But doesn’t this loan just add to an already impossible debt burden?
The Icelandic government took over those banks and in the process took over something like $60 billion dollars in debt. I don’t see how a $6 billion loan will do anything except make the debt total rise to $66 billion.
Do you wish to know what is coming? Watch money. Money is the barometer of a society’s virtue. When you see that trading is done, not by consent, but by compulsion—when you see that in order to produce, you need to obtain permission from men who produce nothing—when you see that money is flowing to those who deal, not in goods, but in favors…
Living beyond ones means will never make anybody happy. Because booms depend on the indebtedness of many, a debt based system can only be ruled by deceptions. It is not foolish to assume that 90% of everything we think we know is false. Nobody likes to be taken for a ride but our world debt orgy came with a very nasty string attached and called: ‘Inflation Holocaust’.
And you still have some difficulties to adjust your thought, just know that it is all deja-vu again: 650 Years Ago, Venice rigged the first, and worst, global financial collapse… causing widespread plague epidemics and the 100-year war between France and Great Britain.
The time of a real Intellectual Revolution is long overdue.
“Quote for the wise”
To preserve the people’s independence, we must not let our rulers load us with perpetual debt. We must make our selection between economy and liberty, or profusion and servitude – Thomas Jefferson
though the banks folded they still have assests, these assets are surely tied in loans to 3rd. parties. If the security is good in these loans then the money will come back as the loans are repaid. If you recall loans instantly you are probably breaking yor agreement with the loan taker, and also he will probably have to default on the loan. Leaving the bank with nothing.