Iceland’s Minister of Finance insists that all deposits in Icelandic banks and savings banks are fully covered and there is absolutely no need for panic over the recent Supreme Court decision on exchange rate indexed loans, which could cost the banks billions.
Minister of Economic Affairs, Gylfi Magnusson read a report in parliament yesterday on the probable effects of the court decision. He said the position of debtors could change massively if the total amount they owe more than halves. This is, on the other hand, not a welcome development, he said. Magnusson believes it would simply be unfair for foreign currency indexed loan holders to get massively more debt relief than krona denominated loan holders. A fair solution has to be found.
The chairman of the opposition Independence Party described the court decision as an indictment on the banks and the country’s financial regulators. He also criticised the mixed messages coming from the banks and the government, RUV reports.
The banks all say they can stand the pressure of changing the loans in accordance with the ruling; although it remains to be decided how. The Prime Minister describes the court’s ruling as very clear, but the future as “not quite so clear”. Finance Minister Steingrimur J. Sigfusson reiterated that all deposits are safe regardless of the increased stress the ruling puts on the banks. He added that there is absolutely no reason to take money out of bank accounts as a precaution.
A fair solution has to be found.
Yes, but doesn’t he think that it might have been easier to do this before they were told that they shouldn’t pay anything?
Sometimes doing nothing and waiting to see can be a good idea, but it has not been in this case.
The chairman of the opposition Independence Party described the court decision as an indictment on the banks and the country’s financial regulators.
Priceless! And who controlled the environment back then?
“He added that there is absolutely no reason to take money out of bank accounts as a precaution”.
What?? The total amount of deposits is about 15 billon Euros, iether the banks nor the dentral bank hasve that money, so Run to save your money.