Jon Asgeir Johannesson and his family owed the Icelandic banks around ISK 300 billion (USD 2.3 billion at today’s rate). His parents owed ISK 60 billion each.
The Althingi report into the banking collapse which was released last week reveals that the British businessman Robert Tchenguiz was the banks’ biggest debtor, owing around ISK 360 billion. Olafur Olafsson was next, owing ISK 164 billion – and both of their debt burdens have doubled in euros since 2007.
Jon Asgeir Johannesson is the third biggest debtor on the list, owing the Icelandic banks ISK 126 billion. Bjorgolfur Gudmundsson owes around ISK 70 billion.
Jon Asgeir’s parents are sixth and seventh, and his wife is ninth on the list.
nice family
“lafur Olafsson was next, owing ISK 164 billion – and both of their debt burdens have doubled in euros since 2007.”
Hmm. Could someone with a deeper understanding of the issue pls explain this: If their debts were in ISK (and the money invested abroad), shouldn’t then their burden have shrunk, relative to the shrinking value of the ISK?
Isn’t it actually the other way round: Those businessmen got loans in EUROS, and because of the shrinking value of the Krona, the nominal ISK value of their debts have doubled by now? Which wouldn’t be a problem at all now, at least for non-Icelandic debtors like Tchenguiz, if that money had been put into secure investments. Which, apparently, didn’t happen, and which increased the problems for the banks.
And what are the authorities going to do about that?
Gray, Germany says:
“lafur Olafsson was next, owing ISK 164 billion – and both of their debt burdens have doubled in euros since 2007.”
Hmm. Could someone with a deeper understanding of the issue pls explain this: If their debts were in ISK (and the money invested abroad), shouldn’t then their burden have shrunk, relative to the shrinking value of the ISK?
I don´t have a deep understanding but I think you have to read and understand that piece of text differently.
It states “both of their debt burdens have doubled in euros since 2007″
The period in question is from 2007 to 2008. That means in that period they doubled their debt.
Eg. the report states that there was sharp increase in loan facilities to Mr Tchenguiz in the period January 2007 to October 2008
Eg. ‘In the first nine months of 2008, in the throes of the credit crisis, Kaupthing awarded Mr Tchenguiz an additional £170m to meet margin calls from its subsidiaries in Luxembourg and the Isle of Man, plus Morgan Stanley ‘.
This is incredible but true. What is the best solution for this ? Two years imprisonment and finished. Where have all the money /property / assets gone ? Is this the amount that is going to be paid plus interest, cost of investigation and legal proceedings by the majority in Iceland including unborn children, disabled, old and aged, sick and all those hard working citizen who paid their taxes on salary deduction ?
Bank regulations and relevant legal provisions should be changed and we have to learn from this mistakes of maipulations fraudulent transactions for a better and secured Iceland or any suggestions ?
Have the banks repossessed there houses,
Maybe forbes billionaires should have a similar global list for debtors standings. That should be interesting, besides providing a balance and proper spectrum to the existing list of world’s richest.
I’m not sure that financial crime will ever attract the penalties that blue collar crimes attract.