Ossur Skarphedinsson, Icelandic Foreign Minister, has formally requested a meeting with his American counterpart, Hillary Clinton.
The reason for the proposed meeting is to request American assistance in removing the blocks put in place by British and Dutch representatives to the IMF with regard to Iceland’s stabilisation loan package.
Information about the requested meeting came from Prime Minister Johanna Sigurdardottir in a parliamentary response to a question from Illugi Gunnarsson of the Independence Party.
The IMF review of its Iceland programme has been delayed already and it is thought the delays are directly linked to Icesave.
A confidential memo was leaked to the public last week from the American embassy in Reykjavik. The memo contained details of communications between members of Iceland’s Ministry of Foreign Affairs and officials at the embassy. The chief assistant to Foreign Minister Skarphedinsson is reported to have said that the USA cannot remain neutral by simply standing back and watching the British and Dutch bullying Iceland over Icesave, Visir.is reported.
Actually the US can in fact remain neutral “by simply standing back and watching”.
More diplomacy and less posturing on Iceland’s part may help the situation. Running to others will likely not help in any way. It is becoming quite clear that the existing politicians have lost all creditability with their foreign counterparts. It is about time for the elected politicians of Iceland to stand on their own two feet and either solve the problem or step aside.
Of course given that the current method of elections in Iceland of electing a party instead of electing an individual, it is not very likely that a team of competent politicians could ever be formed here.
Well, it’s an odd circumstance that Iceland’s President insults the former U.S. Ambassador, that there is now still no replacement Ambassador in Reykjavik almost a year later, and the Government wants help from the U.S. on the IMF review. It would have been better not to engage in the original insult. Maybe that Ambassador would still have been our friend.
Unbelievable : Siegfried seeking help from Fafner the Dragon.
The time for this government has come.
People are calling her to mediate debtor-creditor disputes. I bet she misses the Senate. Obama really played her.
” It is about time for the elected politicians of Iceland to stand on their own two feet and either solve the problem or step aside.”
Indeed
What a sing of desperation !!!
Skarphedinsson needs to just go to RUV and have them record him doing him self and saying to Clinton ” Look what I can do!! HELP!!!
LOL!!
By the way!!
Gasoline at 202 Isk if there is no unity on stopping the oil cartel soon we will have 250 or 300 the Litre.
The Icelandic Embassy in New York is larger and more exquisite than anything the Foreign Secretary can put together at home to plead Iceland’s case to Hillary. Perhaps he could book the historic single shared washroom that brought the Russians and Americans together in Iceland during the Cold War? Prime Minister Johanna Sigurdardottir and Hillary can surely come to terms as they powder their noses and freshen up.
… But does Hilary Clinton want to meet the Icelandic FM?
I can’t see much support for the Icelandic position coming from the US to be quite honest.
Actually, I think Iceland is quite isolated diplomatically on this one.
Of course you could always try making a counter offer to the latest UK/NL offer instead of just denouncing it as unacceptable…. Just a thought.
“The Icelandic Embassy in New York is larger and more exquisite than anything the Foreign Secretary can put together at home”
I must have walked by it a million times and never noticed it.
Though I assume you mean consulate because most countries (all?) would put the embassy in D.C. and maybe a consulate in NY or other cities.
Anyway no one knows your here. Don’t be so shy. Maybe you guys can send over some of those Iceland horses and give people rides around Central Park ? I think that would be a nice gesture and then we will get Hillary to lean on the Brits.
Alternatively, tell the Brits to pound sand. What are they going to do at the end of the day. Once you wipe your debt new money will come in. But you didn’t hear it from me. ;-)
Well, this Foreign-Minister has been a big part ofm the old, failed governemnt…we shoudl enver forget this! the SDA ministers have been part of this crisis as well! The PM is still more or less in “hiding”…some said she is juts a bit “puiblic/camera-shy”…really? for crying out loud, she is the PM! the nation needs somebody to lead it at this time of crisis, not more back-room business as it was the pastb 60 years. I agree, the time for this governemtn has come, the only problem is, what would we get next for? This is like having the choise between Pestillance and Cholera.
One thing bothers me a lot as well…am I undertsanding it right that the original Icesave agreemtn was dfdone with a 5.5% interest-rate and the new offer by the Dutch and british is now 2.75%???? is that what our government called about a eyar ago the best agreement they could get??? I hope I musunderstood…maybe someone couold enlighten me here. I say, let’s stick wity our obligaitons and honor our debts, but make sure we are treated fair as any other nation would be treated and let’ðs not sign or agree to anything whcih no0 other nation would do either. have all sides accept there responsibility and pelase satrt to gte topugh with the crooks who brough this over us!
am I undertsanding it right that the original Icesave agreemtn was dfdone with a 5.5% interest-rate and the new offer by the Dutch and british is now 2.75%????
Not quite right. It’s 3m EURIBOR + 2.75%, so at the moment that’s 3.4%. (These are the same terms as the Nordic loans).
Of course, as it’s variable, it will go up when EURIBOR rates stabalise. Historically, 3m EURIBOR has been between 2% and 5%.
The first 2 years were also interest free in this offer. Not sure if that’s the same with the Nordic loans – certainly I’ve not seen it mentioned before.
@Nils
I think that the lending rate offered is the Eurobor 3 month rate + 2.75%. At the moment this is quite low, but of course it could move higher. So you have the choice of a fixed rate or a variable rate. If Iceland could pay off quickly, then the variable rate would be good (but from earlier postings, it’s not certain how fast the Landsbanki assets can be disposed of).
The Eurobor + 2.75% rate is the same as is being offered by Norway and the other Nordic nations to Iceland for the “Nordic Loan”, and nobody has been complaining about that rate, but they have been complaining about the interest rate in the this proposed Icesave deal. Apparently it’s all right to borrow from the Norwegians at that rate, but not the British and Dutch…
You do have my sympathies when it comes to choice of governing party, the negotiating stance by the present government has been questionable, and the present oppostion included the people who presided over the collapse. Not a great set of choices…
There was also a rumour that there would be no interest for the first 2 years. I honestly don’t know if that has been confirmed (Bromley, Bjarni … help!). That would be a significant concession.
I do think that there is still some tricky negotiation about how to divide up the assets of the old Landsbanki – everybody wants to have priority.
I too hope for an agreement which is fair for all parties concerned.
There was also a rumour that there would be no interest for the first 2 years. I honestly don’t know if that has been confirmed
Confirmed. I thought they were mad to offer it, if only because it quite obviously doesn’t make sense to give everything when the other side are known for haggling. But they did.
Straight from the horse’s mouth (via translation). Bos obviously signed it as he left the building:
Iceland for 2009 and 2010 no obligation to pay interest.
http://www.minfin.nl/dsresource?objectid=78491&type=org
Össur likes to be photo graphed next to leaders in world.
I think he thinks that it acts as a talisman against whatever trouble he is in at the time.
I would be surprised if Hillary Clinton would even meet with him. ( Not that she is any one worth meeting to begin with. )
Brumley wrote:
>So, in July when the Finance ministry released the Nordics rate, that was a rate of 3.8%. 3m EURIOBOR has dropped since, so the offered rate was 3.4% variable.
” >That’s better than Fisy wanted! And w all know that he speaks for the rank and file IP supporter :) . Apparently, though, it’s still not good enough.”
Brumley all this talking about the not honouring the EU guarantee nonsenses is getting tedious. We already agreed to it in August law. December law will be put down in the March 6th referendum.
I long did give up trying to understand Red-Green negotiators. If the interest premium is 2.75%
and as Leo says :
>It says Euribor between 0.42 and 1.22%. So Iceland would pay somewhere between 0.42+2.75= 3.17 and 1.22+2.75= 3.97% interest, depending on what euribor rate they use.
Yes that is more reasonable. Interest rates are not going to stay down that low for too many years. But at least the Euro area will not have this terrible troubles on government bond rates as UK and USA are to have in coming years so it is a gamble to accept but at last a reasonable offer from UK and Dutch.
And no interest 2009 and 2010 is also to be appreciated.
But it is not reasonable if they ignore the Ragnar Hall issue as Bjarni does say :
http://www.slideshare.net/hjalli/the-icesave-dispute-priorities-and-division-of-claims
Without amending it, UK and Holland is ” trying it on ” to gain EUR 0.8 – EUR 1.2 billions * more * than is the intention of the IceSave deal as it was negotiated.
This is against all reasonable ness. And takes back with one hand what they appear to give with the other in a completely unreasonable unfair way.
They should not be trying to take the money via Ragna Hall * issue at all *
Of course the issue of suing and sovereignty is a hot issue as well but the main two — Ragnar Hall issue correct and interest rate made more reasonable means Icelandic tax payer would accept because the deal would not automatically bancrupt the country by 2016.
Brumley all this talking about the not honouring the EU guarantee nonsenses is getting tedious.
Well, now you know how I feel about your assertion that Kaupthing was fit as a butcher’s dog :) .
It is however an important point. You personally may have agreed to the existance of a guarantee, but your government has not. That’s why they’re still, as of the last meeting, trying to negotiate a way out of it.
Your references to the August law and the December law are disingenuous. The terms added to the former have not been accepted by the UK/NL (principally the time limit to the state guarantee) and the latter may, technically, be a law but in reality it’s about to be overturned.
The Ragnar Hall stuff is probably best talked about over in the thread Bjarni’s posting in:
http://www.icenews.is/index.php/2010/02/22/new-icesave-offer-%e2%80%9cnot-acceptable%e2%80%9d/