A very disappointed Prime Minister Johanna Sigurdardottir chose to concentrate on the positive things her government has done since its election and said it is the government’s intention to continue working hard today, despite the President’s decision to send the Icesave Agreement to a public referendum.
Sigurdardottir pointed to the stabilised rate of the Icelandic krona, the reduced inflation and the fact that the financial system has been recapitalised and put back into business as examples of her government’s successes.
The press conference was short and tense, according to RUV journalists.
Nei, you are a lair .the crisis is still .
Well that was a clever way to destroy the little credibility that Iceland had.
Good.Hopefully this will teach countries and people not to lend money to Icelanders. All business with Icelanders should be done on payment in advance basis. Icelanders feel that the world owes them a high standard of living.
Reagrdless of the referendum outcome, I fear the damage has been done by just holding one.
I hope Iceland doesn’t need a banking industry.
To Chris:
What ‘credibility’ you are talking about and how exactly in your opinion passing such serious matter for nation to decide can possibly affect that? Plus, if you’ll think about it isn’t it a great example of democracy which actually works ?
Icelanders are not refusing to pay back ffs, they are generally against the terms and conditions of ‘deal’ UK/NL forcing us into.
Or it’s the fact what differently from all the sheep’s living in EU our voice means something is really bugging you?
Well, calm down than. You will get your cash back (which you shouldn’t in the first place, but we accept our responsibilities), but it will take a bit longer for such small nation to gather it for you than you would like to.
Want it faster? Talk to our bankers. Will be easier for you since most of them already residing in UK.
Prime Minister Johanna Sigurdardottir wishes to enslave the people of Iceland for the crimianl actions of bankers and the stupidity of yield chasers. When these people put their money in these banks there was no protection but they were happy with the yield.
It’s their own fault and they need to suck it up.
I think this is the end of Iceland as a viable nation. How can a “country” (with a population smaller than a single UK city) agree to guarantee bank deposits taken by its banks in the UK/NL and then renege on the agreement without expecting serious long-term consequences.
To Jools UK :
> I hope Iceland doesn’t need a banking industry.
Honestly, while being engineer, I would think twice before naming banking an ‘industry’, because it doesn’t really produce anything.
And yes, banking system which exists now isn’t something I’m happy with, so it may go and wont be missed as soon something more clean and transparent will come in its place.
Seize all is assets (from cars to pensions) in nl and uk, throw out all diplomats, students (including those on bursaries), journalists, etc. Make sure no international money – e.g., IMF – goes to is. End all trade, and make sure not to pay for goods already received. Send in the navy: Nothing leaves is – nothing enters is. Including tourists. Embargo. Also as far as possible as internet is concerned. Lobby to get EU partners to do the same. For starters. And make sure Iceland is presented with the bill for these interventions when they finally agree to keep their promises.
I sympathise with ordinary Icelanders in this fiasco, and agree with the general view that irresponsible bankers should be held to account for their crass stupidity. To my mind that’s all bankers, not just the ones in Iceland.
That being said, many in Iceland were quite willing to reap the rewards while they were there, even though many knew it was a life style built on a house of cards. I don’t think they have any other option but to pay – everyone else in Europe is paying for the stupidity of a few.
Get the USA to take some unpleasant measures as well … after all, ties are close on so many fronts. The USA should be happy to sacrifice Iceland. And, they need UK / NL support in Afghanistan. And with their war on terror (or whatever it is called under Obama) in general. The JSF Program – which, I believe, Norway and Denmark are also involved in … Etc. Etc.
Not a clever move by Mr President.
The debate is more detailed on this subject over here on this thread from earlier today :
http://www.icenews.is/index.php/2010/01/05/icesave-agreement-rejected-by-icelandic-president/
Chris said:
>>>>Well that was a clever way to destroy the little credibility that Iceland had.
Jools UK said:
>>>>Reagrdless of the referendum outcome, I fear the damage has been done by just holding one.
james said:
>>>>I think this is the end of Iceland as a viable nation.
db-nluk said:
>>>>Seize all is assets (from cars to pensions) in nl and uk, throw out all diplomats, students (including those on bursaries), journalists, etc. Make sure no international money – e.g., IMF – goes to is. End all trade, and make sure not to pay for goods already received. Send in the navy: Nothing leaves is – nothing enters is. Including tourists. Embargo. Also as far as possible as internet is concerned. Lobby to get EU partners to do the same. For starters. And make sure Iceland is presented with the bill for these interventions when they finally agree to keep their promises.
I think everyone just needs to take a deep breath and allow the democratic process to go forward. It may be messy, but thats often how democracy works.
In the end there will almost certainly be a negotiated solution to the problem, since its so clearly in the best interest of everyone. Iceland wants to get this behind them in reasonable fair manner, and UK/Netherlands simply want to get paid.
When everyone stops shouting and posturing, they will sit down and find that the solution is actually relatively easy. We figured out a good solution here on the IceNews discussion boards few months ago:
Just treat the Landsbanki according to the standard laws on bankruptcy and charge more reasonable interest for the period while we wait for the bankruptcy payments. UK/Netherlands would still get the guaranteed payment for the full IceSave, as specified in the agreement. This would almost certainly be enough to get the deal through the parliament and referendum in Iceland.
<>
Makes me think re-election must be very important to him. More so than the interests of his country. Perhaps I’m wrong. If so, could someone explain to me what he might be thinking …
‘james’ said :
>How can a “country” (with a population smaller than a single UK city) agree to guarantee bank deposits taken by its banks in the UK/NL
This part is correct. We intend to pay our debts.
>and then renege on the agreement without expecting serious long-term consequences.
Again, because facts of this seems it need to be repeated again.. We intend to pay our debts. If this referndum does reject this December law, it just means that the August law we passed will not be changed.
In that law our govenrment on behalf of Icelandic taxpayers did agree to a state guarantee of IceSave deposits up to EUR 20,887 required by the Directive 94/19/EC deposit guarantee law of EU.
This new December law is about UK and Holland trying to deny us right to se this case in court.
As this post just made on press release of Icelandic govenrment says :
” Government: Iceland still committed to debt repayment ”
http://www.icenews.is/index.php/2010/01/05/government-iceland-still-committed-to-debt-repayment/
Bjarni wrote:
I think everyone just needs to take a deep breath and allow the democratic process to go forward. It may be messy, but thats often how democracy works.
Icelandic democracy and its messy ways, as you write, are, I believe, of little interest to UK/NL who just want to get paid as promised. That is something the government of Iceland should have thought about before making promises in name of their people. As Lincoln said: We must not promise what we ought not, lest we be called on to perform what we cannot.
1) Why uk and nl don’t go into litigation if they feel they could win ? There are several international arbitration courts. Where there is a dispute an arbitration should do the job.
2) Where is the money gone ? Some investments must have been made with the money, like Icelanders buying assets in UK, elsewhere. If the present value does not reflect the money that was paid for it, maybe the sellers in uk and elswhere were not honest with the buyers and they have a their part in the problem.
“All business with Icelanders should be done on payment in advance basis”
In Icelandic krona?…
“In Icelandic krona?”
Only if the business people are really stupid. Pay in Euros, dollars, yen, pounds,zloty, Swiss francs, fish, but not in Icelandic krona.This has to be the only developed country that wants to commit economic suicide.
To TWR
Your democratically elected government voted 33-30 to pass this Icesave debt solution. Gives Iceland 15 years to pay it off, which seems a fairly reasonable
length of time.
“1) Why uk and nl don’t go into litigation if they feel they could win ? There are several international arbitration courts. Where there is a dispute an arbitration should do the job.”
They did, Iceland lost the arbitration. Its irrelevant now as Iceland has agreed to pay the debt, just not all of it and they don’t like the loan terms. Noone else is offering better loan terms, however.
To Peter – London:
>>>>They did, Iceland lost the arbitration.
At least you have now FINALLY dropped the “binding” prefix. :-)
What is disgraceful is that Iceland (not the failed bank) gave a guarantee to UK/NL depositors. Without such guarantee, your bank would not even have been allowed to operate in UK/NL. And no British or Dutch depositors would have put their money in Icelandic accounts. Iceland and its people profited very handsomely from all the deposits. No-one was complaining then, right. Living well above standards one may reasonable expect from inhabitants of a country like yours. The DNB warned you. Others did too. Did you listen? Of course not: Got to have that 3rd SUV. Well, tough: If I spend like you people have, I’ll end up in the poorhouse. And no-one from Iceland will step in to help me. Why should I bail you people out: Sending my son to a good school is more important to me than you living in a palace rather than a modest house. Time to live up to your commitments. And, if you’re going to behave like some dodgy banana republic, then don’t be surprised when you are treated like one too.
To db-nluk:
>>>>What is disgraceful is that Iceland (not the failed bank) gave a guarantee to UK/NL depositors.
This is actually a subject that has already been heavily debated here on IceNews. Since you seem to be stating that “Iceland” gave a guarantee to UK/NL depositors before the crash, it would be quite useful for us to see the specific statement by authorities in Iceland on this, you are referring to.
Please provide the actual reference to the documents with specific quotes that show you are correct.