A large majority of the Icelandic public want parliament to reject sovereign responsibility for Icesave in the Netherlands and the UK, according to a high-tech, but non-binding referendum.
Around 7,500 people took part in the secure electronic ballot commissioned by the Eyjan news website. To take part in the referendum, eligible voters had to have an access code sent to their online banking service – meaning nobody could vote more than once.
69 percent of voters said that the Althingi parliament should reject the Icesave bill and not force Iceland to take responsibility for the debts of a private company; 29 percent said parliament should approve the bill; and 1.6 percent took time out to vote that they have no solid opinion.
When the banking crisis hit Iceland, I had huge sympathy for the people. No more! For years, Icelandic banks made huge investments all over Europe and the Icelanders grew rich. I visited in 2005 and the wealth hit you in the face, with a huge array of expensive imported cars and other consumer goods. All countries in Europe have been forced to bail out banks, costing billions. This was to ensure the decent, hard working savers did not lose everything. The customers of Icesave are no different. It was an Icelandic bank and Iceland therefore has to foot the bill. Simple as that. Just like all the other civilised countries of Europe have had to do the same. This online poll shows that Icelanders do not belong to ‘civilised’ Europe. They want to ride the high of the boom, then leave the hard working savers of the UK and the Netherlands high and dry when it all comes crashing down. As things currently stand, the governments of the UK and the Netherlands have used their own taxpayers money to refund the lost savings from an Icelandic bank. How about a compromise. We’ll foot the bill for all Icelandic banks, and in return Iceland can take responsibility for Northern Rock, RBS and Bank of Scotland in the UK. Fair enough.
So when is the proletariat going to overthrow the ruling government? Get out those pots and pans! Create an organisation to seize power and give it to the people, to realise the democratic dream of equality, justice, peace, and lack of responsibility under EEA banking law…
This is only about the icesave bill Tony, if iceland should grant state guarantee to the icesave “deal” wich is a contract that probably will ruin iceland if it gets state guarantee, if iceland grants this particular contract state guaratee and can not pay on time, possibly because of our currency devaluating even further, then UK and NL can seize any icelandic property, this contract forces iceland to give up its sovereing rights and treats iceland like a company, not a state where hundreds of thousands of pepople live,
we will pay the deposit guarantee, regardless of if we accept this particular deal or not, this icesave deal argument has slowed the recovery of the icelandic economy alot, if a smarter way that does not include the destruction of iceland would have been taken this problem would be solved by now.
>A large majority of the Icelandic public want parliament to reject sovereign responsibility for IceSave.
It’s a while since I did Maths Alex, but I recall that 69% of ‘not a lot’ is still – ‘not a lot’
A more accurate statement would be-
>Few Participate in Informal Online Vote on Icesave
http://www.icelandreview.com/icelandreview/daily_news/?cat_id=16539&ew_0_a_id=355604
However, sadly – the result may reflect the overall position of Icelanders.
Tony said:
“For years, Icelandic banks made huge investments all over Europe and the Icelanders grew rich. I visited in 2005 and the wealth hit you in the face, with a huge array of expensive imported cars and other consumer goods”
You are confusing different issues.
The growth in the local economy was primarily due to the availability of easy credit, rising house prices, similar to many other countries. The wealth you refer to, individuals who bought new cars, did so by borrowing and have to pay that according to the terms of their loan and still have to. What did you think, Icelanders had a special tunnel to Icesave deposits?
“All countries in Europe have been forced to bail out banks, costing billions. This was to ensure the decent, hard working savers did not lose everything.”
Saver’s deposits are but a small fraction of bank bail outs.
It was sufficient in most cases for governments to ensure savers deposits in order to avoid a run on the bank.
“The customers of Icesave are no different. It was an Icelandic bank and Iceland therefore has to foot the bill. Simple as that. Just like all the other civilised countries of Europe have had to do the same.”
What is different for Iceland is the Icesave issue and the State taking an extra loan on top of all other bail outs. This extra loan would be the equivalent of EUR 800 – 900bn in the UK or the entire bank bail out debt in Ireland EUR70bn
Icelandic state has already bailed out the banks local operations. I haven’t come across any country that has a similar indebtedness for the operations of their private banks on foreign soil. Landsbanki in the UK, invested in the UK not Iceland.
“They want to ride the high of the boom, then leave the hard working savers of the UK and the Netherlands high and dry when it all comes crashing down. As things currently stand, the governments of the UK and the Netherlands have used their own taxpayers money to refund the lost savings from an Icelandic bank”
That is rather simplistic.
I suppose there is a reluctance to accept the icesave debt as being Icelands.
Most people think that in a crashed depressed economy, they have to pay their own personal debts, take on the burdens of the financial pain of a collapsed currency, bank bail outs, IMF loans and now looking at the the Icesave elephant coming tumbling in.
Icelanders had about 10 great years because of the easy credit from Icelandic banks, so now its time to pay for these years.
What are people waiting for, it is clear that the goberment is not doing the will of the people, and even Steingrimur said yesterday ” yes I understand they dont want but we will do it anyways” WTF??? in other words whatever you want stick it up your @ss, we dont care we do what is best for our feinds!!
When you consider that the Icesave burden per Icelander before interest – depending on the value of assets that can be offset against the Icesave ‘loan’ from the UK and the Netherlands – ranges from £500 – £11,000 the turnout for this poll is unimpressive.
The real statistic is that 97% of the population of Iceland thought this poll was useless and irrelevant.
Knowless said.
>I suppose there is a reluctance to accept the icesave debt as being Icelands.
Most people think that in a crashed depressed economy, they have to pay their own personal debts, take on the burdens of the financial pain of a collapsed currency, bank bail outs, IMF loans and now looking at the the Icesave elephant coming tumbling in.
In another thread Fisy said:
>Personally I am not comfortable with that rite off after 2024. But perhaps it is indeed done for a reason as Axel says about the IMF loan ceilings. But still I would prefer personaly that we paid off the full debt as long as it would take, subject to the caps based on GDP.
But this only will close the IceSave issue.
http://www.icenews.is/index.php/2009/09/02/icelandic-president-signs-icesave-deal/#comment-92309
I would appreciate a clarification at this point.
Knowless and Fisy – is your present position that the debt is legitimate, and the issue relates not to an acceptance of liability – but to the terms of settlement – in that the debt should be sustainable?
“What did you think, Icelanders had a special tunnel to Icesave deposits?”
Yes, Icelanders did indeed have a special tunnel into Icesave deposits. Where do you think the Icesave deposits went? They were used up funding the Icelandic economic bubble (jobs, social services, etc) for a few more months. It really is as simple as that. If the Icelandic banks hadn’t swindled billions from foreign depositors throughout 2008, the country’s bubble would have crashed much earlier.
The assets of Landsbanki are being sold to cover the depositors guarantee, who has priority over everything else, Lb already has 200 bn in cash and tens of billions are coming Lb Lux shortly, the assets will cover ca 80% of the deposits fund needed for this, the rest falls on the icelandic taxpayer, the problem is that UK/NL and the EU are pushing for this icesave deal to materialize, i think they see the deal as a good future investment, if the depression increases even further iceland like many other countries will run into major problems and UK/NL/EU can end up getting icelandic assets in iceland trough British courts because of this deal, the IMF has made sure we can not use any loans from other countries to pay the depositors fund, the IMF want us to burn the loans by trying to support the Kr, we dont need loans for that, its quite obvious what the intensions of UK/NL/EU/IMF are.
Jimbo (original Jim) said:
“Yes, Icelanders did indeed have a special tunnel into Icesave deposits. Where do you think the Icesave deposits went? They were used up funding the Icelandic economic bubble (jobs, social services, etc) for a few more months.”
The Icelandic operations of the bank were small in comparison to its activities abroad, does that need explanation, is it not obvious?
“It really is as simple as that. If the Icelandic banks hadn’t swindled billions from foreign depositors throughout 2008, the country’s bubble would have crashed much earlier.”
Of course if the Banks operations collapsed when they should have, the Icelandic bubble would have burst in 2006.
The Icelandic bubble was not was filled with Icesave air. The money available for business and individuals to borrow was not provided by icesave deposits.
Terry said: “I would appreciate a clarification at this point.
is your present position that the debt is legitimate, and the issue relates not to an acceptance of liability – but to the terms of settlement – in that the debt should be sustainable?”
The debt is legitimate if they say it is so.
I have yet to see a proper explanation on sustainability, how on top of a depressed fragile economy with a State already heavily in debt, can take on another debt some 50% of the size of its GDP and
Check to see what that would mean for your country
west said:
“Icelanders had about 10 great years because of the easy credit from Icelandic banks, so now its time to pay for these years.”
Where did you get your 10 great years from?
Easy credit yes, not free credit.
Any Icelander who borrowed money has been paying it back and has to continue to do so.
Any Icelandic business that has not gone bankrupt has to make good it’s debts.
Icesave debt is another debt issue altogether.
It is the issue of an already heavily indebted state taking on the massive wasted gambling debts of its arrogant bankers.
“The money available for business and individuals to borrow was not provided by icesave deposits.”
Why do you think that? For example, can you provide a reference/link to show that Icesave deposits were ringfenced from use in Iceland in 2007-2008? How do you know they weren’t used to provide Icelandic salaries, Icelandic loans, collateral for Icelandic loans, etc?
If you are looking for the icesave money Jim you should talk to Björgolfur Thor, he just finished negotiating tax discounts and all kinds of aid from the state for a huge data center he is building in Reykjanesbæ, he has been sucking money out of the banks for years, ever since he bought the LB for 11 bn isk, he still owes KB a 6 bn loan he took to finance this, the rest came from Russia where Björgolfur is well connected,
http://www.icelandreview.com/icelandreview/daily_news/?cat_id=16539&ew_0_a_id=301638
Bjorgolfur will own 40% of this company,this would be a great idea without Bjorgolfur, but i suspect he will be supplying most of the money for this project, directly or trough some magic tricks,
so if he would be excluded the project would die,
would you trust Bjorgolfur with your data ?
anyway, Merry Christmas to everyone :)
Alexl :
Björgolfur Thor, he just finished negotiating tax discounts and all kinds of aid from the state for a huge data center he is building in Reykjanesbæ
That is the part that you should be putting accent on and that is positive.
Björgolfur Thor actually is bringing the investors back into coutnry despite how difficult the Red Green government is making this whole thing with not dismaltnling the exchange controls.
Also dont over look this interview with him :
http://www.icenews.is/index.php/2008/10/31/interview-with-bjorgolfur-thor-bjorgolfsson/
Tony wrote :
>When the banking crisis hit Iceland, I had huge sympathy for the people. No >more! For years, Icelandic banks made huge investments all over Europe
Yes, during time after privatizing of the banks they did get a good amount of loans from whole sale banking markets.
>and the Icelanders grew rich.
Icelanders were already rich before banks privatized. And our standard of living did become more the same as rest of Western World since 1991 when did we reconnet with the world markets and so this freedom did at last allow us access to buy things. These things we did buy based on wealth we get mostly from fish — but also from our own creativity toward solving problems and making things.
( We have been rich by world and European stadnards after we did have our independence in 1944 — because of fish — but since 1991 we did actually get connecting in other way with the rest of global economy that we did not have before. )
>I visited in 2005 and the wealth hit you in the face, with a huge array of
>expensive imported cars and other consumer goods.
Since 2003 did Icelanders begin to get access to credit like other Europeans for first time — after banks began privatisation — so at last we did get access to loans on terms ( high interest though ) that we did not get before then under old government owned banks where loans was given based on political pull reasons.
So what you did see was things bought because people did have access to consumer credit for first time in ways like rest of Europe. But also did we benefit as consumers from the strong Krona to buy items using that money borrowed from bansk ( which did come from whole sale bank lending markets mostly ).
You did not see any money from the UK HOlland etc retail deposits taking until end of 2006 when IceSave did launch and then for Kauphrthing Edge in start of 2008.
Before then you was seeing result of people getting loans against they credit ratings for first time. Much of it to begin with was capital released for lao nfrom from banks assetst themselves — but over time an incrasing amount coming from banks took from wholesale bank markets.
NOT from people in UK and Holland.
>All countries in Europe have been forced to bail out banks, costing billions. >This was to ensure the decent, hard working savers did not lose everything.
No. That was not the reason.
It was done because after Ireland did say that it woudl guarantee its banks unlimited above the EU deposit limit for 2 years the other EU member state did have to match it or all money would have gone from UK and Germany and Holland to Irish banks.
It was done because if it was not done money would fly over to some other member state of EU out of UK or Germany or Holland into Ireland for example.
The EU deposit scheme made by the EU burecrats since 1994 was designed to be funded by the banks in the country and it was only the job of the government of the country to make sure that fund was made and that it was being paid into by the banks of the country.
It was not designed for systemic failure of all banks in a country. It was designed for a one bank failiing in a country where the fund was paid into by 80-100 banks or more.
>The customers of Icesave are no different.
You are write that the customers of IceSave are no different – they did not get state guarantees from UK until after Ireland had given 100% guarantees of its banks for 2 years altering the land scape of how deposit guarantee scheme was going to work.
Darling did do it because he was desperate to stop UK banking system collapsing completely during that week in October 2008.
During day or so leading to use of anti-terrorist law against Landsbanki and Central Bank of Iceland / Government , UK bank system was only few hours from collapse as capital was flowing out quickly to places like Ireland but mostly to Asia.
The changes to EU depositor insurance was done unilaterally by each EU member state without consult the other ones to stop money leaving they banking systems.
It had little to none to do with indiviaul depositors of banks. Many of which was specualting not depositoring. It is hard for someone looking to get 6% on money when actual rates being paid is below 3% to be anything other than speculating.
It was false security of EU deposiut insurance regulations that did create this moral hazzard that did cause them to put they money in places like IceSave.
EU commission burecrats did twitch in fear during this period of unilateral actions by different EU member states. ( Those burecrats that do actually care about what does happen and who are not busy enjoying they long lunch on EU taxpayer expense. )
This change in way things worked came from Ireland and then others copied it very quickly. KNowing that otherwise the Irish banks would have huge amoutn of the money from Europe sent into their accounts very quickly.
>It was an Icelandic bank and Iceland therefore has to foot the bill. Simple as that.
Iceland has to pay the bill. But to pay this 5.5% interest — well that is the main issue of contention.
It is this 5.5% interest that will cause country to go into soverign default by 2016 :
http://www.icenews.is/index.php/2009/07/01/iceland-icesave-deal-“there-is-no-plan-b”/#comment-83787
>Just like all the other civilised countries of Europe have had to do the same.
I think it interesting you talk about these other civilised countrys — when in fact it was very much every country for itself and to hell wwith others — something started by Ireland and followed quickly by UK using it anti terrorist law against Landsbanki and Central Bank of Iceland etc. And of course taking Kaupthing Singer and Friedlander using so called Nortern Rock Act.
So I think to talk about ” other civilised countries of Europe ” is very rich. And simply not looking at facts of that time that came end of 2008.
>This online poll shows that Icelanders do not belong to ‘civilised’ Europe.
No. It shows most that Icelanders believe that UK and Holland is taking advantage of them with IceSave deal of 5.5% interst.
And they want to see it in front of a imprtial court.
If that means they end up paying * more * later then it will be accpeted because an impartial court will have given ruling.
>They want to ride the high of the boom, then leave the hard working savers of
>the UK and the Netherlands high and dry when it all comes crashing down. As
>things currently stand, the governments of the UK and the Netherlands have used
>their own taxpayers money to refund the lost savings from an Icelandic bank.
>How about a compromise. We’ll foot the bill for all Icelandic banks, and in
>return Iceland can take responsibility for Northern Rock, RBS and Bank of >Scotland in the UK. Fair enough.
How about UK followed by Holland not taking advantage with this 5.5% interests that they know will bankcrupt Icelandic economy.
( See link above .)
Mike Smith did says:
>the turnout for this poll is unimpressive.
It receive very little publicity. I had not herd about it until it was over for example.
But indefense.is has received proper coverage and has been open for some time.
If scientifc one was actually open and publicity for the same length time as indefense you would see similiar or greater turnoout. And same atttiude.
In this case if it was open longer you would have had an actual scientific referendum done on this issue. I can tell you that results clearly would have scaled up..
When it goes to referendum by president you will see that.
Terry did say :
>>A more accurate statement would be-
>>”Few Participate in Informal Online Vote on Icesave
>>
http://www.icelandreview.com/icelandreview/daily_news/?cat_id=16539&ew_0_a_id=355604
>>
>>However, sadly – the result may reflect the overall position of Icelanders.
If you look at indefense.is poll ( signed by close to 10% of Icelandic people ) and this online scientifc one it does show exactly what is on Icelander mind.
Which is that vasy majority Icelanders believe that UK and Holland is taking advantage of them with IceSave deal of 5.5% interest.
And they want to see it in front of a impartial court.
>>In another thread Fisy said:
>>>Personally I am not comfortable with that rite off after 2024. But perhaps it is indeed done for a reason as Axel says about the IMF loan ceilings. But still I would prefer personaly that we paid off the full debt as long as it would take, subject to the caps based on GDP.
>>>But this only will close the IceSave issue.
http://www.icenews.is/index.php/2009/09/02/icelandic-president-signs-icesave-deal/#comment-92309
..
>>>This ” profit is private an losses are public ” mantra from left wingers is mind less slogan. It is mind less slogan because of course as Mike UK Nordic analyst point out before profit is taxed by the state. So the profits are public as well as private.
>>>The losses * should * not be public. But thanks to EU regulations they have become for us in IceSave case.
>>>Lets be specific, the ” fine system ” you are talking about came from the EU regulations. That is why Icelandic taxpayer is left with this bag for IceSave ( Landabanki ).
>>>A bag we taxpayers do not have to take for Glitnir ( in worse shape ) and Kaupthing ( in good shape but taken by UK Darling and the FSA anyway).”
>I would appreciate a clarification at this point.
>Knowless and Fisy – is your present position that the debt is legitimate, and the issue relates not to an acceptance of liability – but to the terms of settlement – in that the debt should be sustainable?
Under EU directive that we did put into Icelandic laws as part of EEA agreement — we do not have to take on this debt as a state guarantee.
But yet if this was put in front of impartial court then after that result can come politicial agreement that Icelandic government should take on burden of the debt loan that was made by UK and Holland.
Problem is that it hasn’t and this 5.5% interest is just horrible.
So we have had enough of this bullying and we want to see it in court.
That is what I and the Icelandic tax payer do want.
We have had enough of UK and Holland.
We have had enough of EU commission.
Even if that means individual EU member state making a trade embargo against us until court case is finsished.
Then so be it.
To court.
Jimbo (original Jim) said:
“The money available for business and individuals to borrow was not provided by icesave deposits.”
——-
Jimbo (original Jim) said:
“Why do you think that? For example, can you provide a reference/link to show that Icesave deposits were ringfenced from use in Iceland in 2007-2008? How do you know they weren’t used to provide Icelandic salaries, Icelandic loans, collateral for Icelandic loans, etc?”
Jimbo this is what I wrote
“The Icelandic bubble was not was filled with Icesave air. The money available for business and individuals to borrow was not provided by icesave deposits.”
The bubble was made possible with easy available credit sourced from Eastern investments. This ended in april or may 2006 when the economy should have allowed to retract.
Have you checked the Landsbanki accounts to see where the Icesave money went?
Could well have gone to apply plaster to the considerable foreign operations.
How much did they purchase in the UK on borrowed money, how much had they loaned out with borrowed fund/ deposit funds in the UK?
What was the source of all the money loaned out in Iceland after 2006? Do you have any links to provide clues? The Icesave claim is about 14% of the total claim on Landsbanki´s estate. Landsbanki had about what 50% ? of the business market in Iceland. State owned institutions provided most of the mortgages and student loans.
It is palpable nonsense to allude that an Icelandic citizen having already purchased a house or a car will not have to pay that mortgage or repay that loan back, that the Icelandic citizen has taken the money and run. Every personal loan, car loan and mortgage taken by an Icelandic citizen is required to be paid back.
The Iceland economy had recovered quite fine from the crash of the early 80’s. It took about 10 years for a basic stable business confidence. This stability stayed for another 10 years, stable house prices employment and stable enough currency. Iceland was doing just fine before the bubble started to be seriously pumped in 2003. Pre 2003 the standard of living was good and quality of life as good as it gets.
Actually, Fisy, the 5.5% rate seems to be pretty-much what Iceland is paying everyone else that it’s borrowing money from.
http://www.island.is/media/eydublod/04-Lantokur-islands-i-kjolfar-bankahrunsins-2009.PDF
So, assuming for the moment that Iceland should pay the Icesave guarantee, why should that rate be different from the rest?
“Björgolfur Thor actually is bringing the investors back into coutnry despite how difficult the Red Green government is making this whole thing with not dismaltnling the exchange controls.”
The man almost ruined this country.
he is a enemy of the state, if you like him so much and think he can return to iceland, why dont you take him to a icelandic pub and see what happens, just call 112 before you walk in the door.
Bromley, Britain and NL are boroing this amount they intend to lend iceland from the EU, i wonder what interest rates they are paying, 1% ?
the reason iceland is being forced to pay high rates is because of our credit rating status whitch is almost as bad as it gets, but then you look at Britain, who has no natural resources, horrible debts, horrible deficit, massive unemployment, a uselsess gov thats as good as dead, way to big banking sector who is in great distress to say the least and bad future prospects for the next 10-20 years,
still Britain has AAA ratings, who believes this,
i wonder if Britain has a ” special tunnel ”
to the rating companies.
Brits are probably not going to be living in mud huts or wear straw skirts but brits are going to have to build a sustainable econmy at some point.
“So, assuming for the moment that Iceland should pay the Icesave guarantee, why should that rate be different from the rest?”
That’s a good question, but there’s also a good commercial reason: the Icesave loan has already been lent and so the interest rate negotiation should now be in Iceland’s favour. It’s unfortunate that Iceland’s original negotiators were unable to exploit that point to agree a lower rate (eg 3.5%) many months ago to help Althingi agree and move on. The UK and Iceland should have met half-way if they wanted an agreement. Or the UK can stick to its guns and there may never be an agreement…
>Bromley, Britain and NL are boroing this amount they intend to lend iceland from the EU, i wonder what interest rates they are paying, 1%
AFAIK, the UK is currently borrowing at or near 4% and it’s not from the EU (at least not from some central EU reservoir). But I freely admit that I might be wrong on both counts.
>It’s unfortunate that Iceland’s original negotiators were unable to exploit that point to agree a lower rate (eg 3.5%) many months ago
Yep. Too busy trying anything to avoid it being a state guarantee to concentrate on the important points. By the time they’d accepted that that was not on the table (May IIRC), they appear to have used up any goodwill on the UK/NL side.
Still I’d personally either have used the rate the Nordics are using, which is variable and low at the moment but which will likely top 6% when EU rates recover, or the 5.25% rate that the Faroes agreed to. Either one would have disarmed the argument that the rate is too high.
I write :
“Björgolfur Thor actually is bringing the investors back into coutnry despite how difficult the Red Green government is making this whole thing with not dismaltnling the exchange controls.”
Axel does reply :
>The man almost ruined this country.
If you look at facts that is simply not case.
>he is a enemy of the state, if you like him so much and think he can return to
>iceland,
He has returned to Iceland several times. You remember he does not live in Iceland — he has lived abroad for most of his life. This is not because he had to leave. He has not lived here for most of his life.
Even Spaugstofan does make fun of him about the way he speaks Icelandic because he has been away for so long.
>why dont you take him to a icelandic pub and see what happens, just
>call 112 before you walk in the door.
I do not know what pub you go into but I expect in most pub in Iceland there would be a different reaction which is to interrogate him about his latest investment.
Icelander have not suddenly because uncivilised and knee jerk because of the Kreppa. Only our politicans in govenrment seats now are like that.
Unlike other Outvasion Vikings who did leverage their own capital from companiues inside Iceland he did bring capital into country from his own business built up and sold outside.
Yes from selling business he did build up with his own sweat. Not some borrowing cheap easy money.
And has continued to do that even thnough it is made so difficult now by Red-Green coalition.
( You know the geniuses that do raise taxes to 30% because they friends in Dutch government told them that it would be a good idea to do it – from 10%.. )
Read again this interviwe that is very much over looked and do compare and match his actions with his words instead :
http://www.icenews.is/index.php/2008/10/31/interview-with-bjorgolfur-thor-bjorgolfsson/
Iceland has debt to The Netherlands and England. The reason that icelanders don’t want to pay for the bad icelandic banks certainly doesn’t mean Holland and England have to pay for the bad icelandic banks. If Holland and England don’t get their money back at reasonable terms, iceland finds itself very much more isolated than it already is.
Dutch and British will probably not let Iceland in the EU if it doesn’t live up its obligations. And know this: the EU doesn’t need Iceland as much as iceland needs the EU! If Iceland cannot rely on outside help (e.g. IMF) it will be confronted with even bigger debts. Without outside help Iceland will become even less creditworthy. The islandic currency will become even worthless as compared to the Euro, Imported goods will become extremely expensive! And if Iceland refuses to pay it declares a financial war on itself.
I think Island is the worlds most arrogant small country.