Icelandic Foreign Minister, Ossur Skarphedinsson this evening said he believes it would be very difficult for the Nordic nations to freeze their loans to Iceland.
He said that it is not only the Nordic sense of togetherness that would complicate matters, but also the speeches and sentiments coming from Scandinavia in recent weeks and months that would make a U-turn embarrassing for Scandinavia and a heavy body-blow to Iceland.
He went on to point out that despite the President’s decision to send the Icesave Bill to a public vote, the bill has nonetheless become law – at least until such time as the public vote takes place. If the public then vote the law down, the previous Icesave law would come back into effect. Although the August Icesave law proved unsatisfactory for the British and Dutch governments, it did nonetheless categorically state that Iceland will reimburse the two countries’ Icesave losses.
The Nordic loans were, despite assurances, always dependant on Iceland’s parliament adopting an Icesave solution and the President’s potential for complicating the issue was hardly taken into account at the time. Skarphedinsson conceded that there would likely be no diplomatic crisis between Iceland and Scandinavia if the loans were to be refused because of Icesave. The Scandinavian countries have, he said, always treated Iceland fairly and their leaders have all agreed, in principle, that Icesave should not affect their relationships with Iceland.
You have to be kidding? The worst kind of political bull:
“He went on to point out that despite the President’s decision to send the Icesave Bill to a public vote, the bill has nonetheless become law – at least until such time as the public vote takes place.”
To Bromley86:
>>>>You have to be kidding? The worst kind of political bull
Actually, technically Ossur Skarphedinsson foreign minister is correct. According to the 26th article of the constitution, even if the President declines to sign the laws in question, they still become valid, until the referendum takes place.
This kind of could create a rather weird political situation in this case, as legally, Steingrimur J Stefansson, the finance minister COULD now sign the IceSave guarantee. That would of course lead to immediate constitutional crisis, so he declared quickly the day after he would NEVER do so, so the whole issue is moot.
I guess Bromley86 lives in South London, thus doesn´t know the full story behind Icesave. I moved to Iceland 2 years ago, and feel I know most of the facts behind Icesave, and fully sympathise with Iceland, and see that the UK are just bullies, with vindictive media coverage and government. Even if Iceland lost every krona, it would be the best, friendliest and safest place on Earth to live. Politics in Iceland are far beyond politics in the UK – Iceland is fairer and honest to its citizens. The UK government is full of deceit and controls the media and public like puppets.
Ossur is the worst together with Johanna but I hate ossur for his anti Israeli speaches!!!Person like he should never be in politics
How can Norway be sure they will get their money back. A guarantee from Iceland is worthless.
this is what the world thinks:
http://uk.news.yahoo.com/22/20100107/tts-uk-iceland-ca02f96.html
“Reykjavik’s plans to stabilise the economy and regain access to foreign capital took a huge blow when President Olafur Grimsson refused on Tuesday to sign into law a bill revising the terms for repaying Britain and the Netherlands for compensation they have already paid out to Icesave account holders.”
And who said that Iceland was going to be one of the first countries to get out of the crisis? fairy tales!
Icelanders have proven to be really bad in foreign politics. Now they go begging for help everywhere again, and again, and again. But nothing is solved and wont be solved until they realize they HAVE TO PAY for icesave, there is no other road, no other way…. If they had taken the decision one year ago of paying for icesave and getting into the EU things would look much different now. But now it is really too late for both.
I bet great misery for the years to come in Iceland, if not decades… They have blew up the last thing they had, which was the credibility of the international community. They played again their cards with their stupid sense of viking superiority. Results? THE WHOLE WORLD IS TURNING THEIR BACK TO ICELAND.
GOOD LUCK!!
@james
“How can Norway be sure they will get their money back. A guarantee from Iceland is worthless.”
Iceland has said it will pay Icesave but not by becoming slaves to the UK and Holland.
Guess again Ray. And, having been on this board for just over half the time that you’ve been in Iceland, I can say that you might want to open your eyes to the politics in Iceland.
Bjarni. Although technically correct, a law that can (and will, in all likelyhood) be repealed ASAP is not much use :) . Anyone pretending that it is is, as I said, being a weasel.
Ray Lyles said:
“Iceland is fairer and honest to its citizens.”
I you had read the posts on this site and on IWR over the past year and a half you would see how ridiculous that statement is.
“I moved to Iceland 2 years ago, and feel I know most of the facts behind Icesave, and fully sympathise with Iceland, and see that the UK are just bullies”
The fact is Iceland had, at most, 5months to pay the depositor protection to EU depositors. It pay Icelandic depositors immediately and has so far refused to pay EU depositors. UK/NL are offering a loan far below commercial rates and Icelanders are complaining about it.
Well, get a loan from someone else.. oh I’m sorry nobody else will lend Iceland anything as its a junk borrower.
Gus did paste :
>This is what the world thinks:
http://uk.news.yahoo.com/22/20100107/tts-uk-iceland-ca02f96.html
Acutally the press where journalist has not clearly been told to push a particulr line the opinion varies.
But the articles with the quiet and considered journalist tones where real fact checking has been made the opinion is one that UK and Holland are acting as bullies and asking too much with the 5.5%.
For example :
http://www.ft.com/cms/s/0/c73cdee2-fb2c-11de-94d8-00144feab49a.html
Iceland has the right to refuse debt servitude? ( google it and click the search respons link to read it if you get the ridiculous registration wall FT puts up )
( Despite what Mike did say about ignoring it it is one of better articles on the subject published last days. )
Leading article: Iceland should not be bullied
http://www.independent.co.uk/opinion/leading-articles/leading-article-iceland-should-not-be-bullied-1859930.html
Ian Birrell: It is counter-productive to humiliate another nation
http://www.independent.co.uk/opinion/commentators/ian-birrell-it-is-counterproductive-to-humiliate-another-nation-1859949.html
>Well, get a loan from someone else.. oh I’m sorry nobody else will lend Iceland anything as its a junk borrower.
The irony of the fact that it was actions of Brown and Darling that started the whole reputational downgrade of Iceland.
Since then it is because of the huge debts that we must pay and that is not helped by IceSave at all without the August law terms.
That we get downgraded because of uncertainty now is moot. We would get downgraded if we signed up to the Decemeber law because it adds such a burden to the state finances.
If we did not get that downgrade if President had signed the law then the analysts at rating agencies would be asleep or simply bad at their jobs in research.
The fact is that when Landsbanki went into adminsitration in Iceland after that Darling and Brown did not give any chance for us to do a deal. By taking Kuapthing Singer and Friedlander they removed the chance we had of getting through the troubles.
And it is blatently clear that this unilateral guaranteeing of deposits in UK on Icelander TIF behalf came out of a desperate need to stop money flowing out of the UK that week in October 2008 :
“Britain was ‘three hours from going bust’
.. “on Friday, 10 October the [ UK ] was ‘very close’ to a complete banking collapse after ‘major depositors’ attempted to withdraw their money en masse.” :
http://www.icenews.is/index.php/2010/01/05/icesave-agreement-rejected-by-icelandic-president/#comment-108749
http://www.icenews.is/index.php/2009/12/19/majority-in-iceland-want-to-reject-icesave-bill/#comment-106692
Fisy, I assure you, the actions of Brown and Darling have nothing to do with Iceland’s current lack of credibility. Iceland’s own actions have been more than enough to demolish its international reputation. Look to Oddson if you want to blame some individual.
You support us and we’ll give you lots of points during the Eurovision Song Contest. For a change. Iceland does have bargaining power!
>Look to Oddson if you want to blame some individual.
Apparently Fisy has never voted IP, but good luck getting him to say a bad word about Oddsson :) .
>That we get downgraded because of uncertainty now is moot. We would get downgraded if we signed up to the Decemeber law because it adds such a burden to the state finances.
Although that makes sense to me, it isn’t what the ratings agencies were saying. Or even doing with the improvemnt in rating because of the passing of the law.
To Bromley86:
>>>>Bjarni. Although technically correct, a law that can (and will, in all likelyhood) be repealed ASAP is not much use :) . Anyone pretending that it is is, as I said, being a weasel.
Correct, Ossur was explaining the exact wording of the constitution, not suggesting the government would necessarily act on it.
This is the reason Steingrimur almost immediately had to come out and say he would not sign the guarantee, although (technically/legally) he could have.
So Norway and the other countries are going to borrow money to Iceland? Lets see under what conditions really. What I think Iceland really deserves is a very cold shower of modesty and wake up to the reality of the world. Icelanders need to work for what they have, not use borrowed money from honest EU savers to buy ALL THOSE NICE CARS JEEPS AND THE LIFE THEY USED TO HAVE HERE, you still see them, driving nice cars everywhere, nice volvos and audis and the like. While the common EU saver live more wisely saving money. Saving money for what? for putting it in the hands of this nation? Where is the money they put in the hands of Iceland? did they use it to develop the countries economy? to make it a better nation? NO!!! THEY USED THE MONEY TO GIVE THEMSELVES A QUALITY OF LIFE THEY COULDN´T AFFORD OTHERWISE. And now that the ORGY finished, there is not other reality than GOING BACK TO YOUR FISH FACTORY, not the polish or other immigrants that thanks god most of them have left this country, but YOU ICELANDERS YOURSELVES with all your SOUL.
GO AND WORK FOR YOUR DAILY BREAD!! JUST LIKE EVERYONE ELSE.
I don’t think Iceland deserve any money from anyone. I think that what they deserve is to be modest and come down from the skyes they think they are and live on the earth. Hang the executive suit, and go and work as other europeans do, work in your fabrics and your fish factories!!
You don’t see in EU normal workers with normal wages going to work in luxury mercedes, volvos and the like. But come to Iceland and you will see so many people having those cars.
THEY DON’T DESERVE MORE OF OUR MONEY!!! KAMON!! ARE WE GOING TO ALLOW THIS PEOPLE KEEP THEIR LUXURY LIVE WITH OUR SAVINGS?? HOW COME THIS CRAZYNESS!!!
If i was IMF I would send all that money to countries WHO REALLY NEED IT for food. There are MILLIONS OF CHILDREN in the world that are DYING OF HUNGER!! and these icelanders go cap in hand begging for money because they don’t want to BE POOR.
If Norwegians and swedish think this is the right thing to do, then GOOD FOR THEM, I don’t think you will see your money again!! If I was SWEDISH I would rather ask my government to employ the money in SAVING JOBS IN SWEDEN AND SAVING COMPANIES LIKE SAAB, because thousands of people have gone unemployed there, and now THEY ARE GOING TO SEND THE MONEY OF THE AVERAGE HARD WORKING SWEDISH MAN so this icelanders can keep living in luxury?!!
and with all do respect we don´t need those loans cause where not gonna pay for those mistakes the euro-dweebs did
““How can Norway be sure they will get their money back. A guarantee from Iceland is worthless.”
Norway doesn’t expect to get their money back. And Denmark and Sweden probably do not either.
The Nordic countries have pledged $3 billion to Iceland. That is supposed to be used to pay off Icesave, in much the same way that Abu Dhabi “loaned” $10 billion to Dubai to pay off Dubai’s debt.
If you add up the money from the sale of Landsbanki UK assets, plus the $3 billion from Scandinavia, then Icesave is paid off in full and Iceland pays nothing. And the path is open for Iceland to join the EU. (And interest payments to the UK/NL will be minimal if Iceland sells off the Landsbanki UK assets right away. Why exactly are they waiting to sell the assets? The UK economy — and the value of UK Landsbanki assets — are going to plunge in the next few years).
Why don’t the Icelanders realize this? Because they are STUPID. Too stupid to realize that nearly all of the Icesave burden will fall on others, and too stupid to realize how much benefit they will get from the EU and the Euro. Replacing the ISK with the Euro is a free gift amounting to many, many billions. Not to mention free subsidies and EU loans to the insolvent Icelandic Central Bank.
All they have to do is sign the agreement.
But no, Icelanders sit around all day long calculating interest payments that they might owe in theory, when as a practical matter nearly all the costs of Icesave will be paid by the citizens of Norway, Denmark and Sweden.
Incredible.