Police in Reykjavik today used pepper spray against protesters attempting to prevent Prime Minister Geir H. Haarde appearing on a television show being broadcast from Hotel Borg on Austurvollur Square in central Reykjavik. Read the full story

“I’m surprised at just how peaceful Icelanders are,” said Margret Kristin Blondal, protesting alongside her mother, Solveig Hauksdottir outside the Cabinet meeting house yesterday. She said it’s unbelievable that nobody has yet started ripping up paving stones to throw. She believes that the protests could be a lot more violent. “Maybe that’s what the government is waiting for,” she says. Read the full story

The Prime Minister’s Office has enlisted the services of Swedish banking expert Mats Josefsson, on a temporary basis. Mats Josefsson will succeed the previously appointed Ásmundur Stefánsson as advisor on rebuilding Iceland’s banking system. Read the full story

Geir H. Haarde, the Icelandic Prime Minister, said that hope was rekindled yesterday when the Icelandic krona was traded on the international market for the first time since the banking collapse in early October, according to MBL.is. Read the full story

A vote of no confidence brought to the Icelandic parliament today has been defeated, RUV television news reported.

The bill called for the dissolution of the current coalition government by the end of the year and elections to follow.

Discussions took place most of the day in Read the full story

“Not all conversations concerning this matter have been made public . . . When the matter is investigated, other conversations will have to be made public. I am aware of what they are about and I am aware of what in fact determined the position of the UK authorities,” the Financial Times quotes Icelandic central bank chairman David Oddsson as saying. Read the full story

Geir H. Haarde, Icelandic Prime Minister today announced (at a press conference) his intention that all elected officials and judges should take a pay cut. President Olafur Ragnar Grimsson suggested a few weeks ago that he would welcome such a move and that he hoped Haarde would consider it. Read the full story

A press conference held by the Icelandic Prime Minister, Geir H. Haarde, and the Icelandic Minister of Foreign Affairs, Ingibjorg Solrun Gisladottir, is taking place in the Cultural House at 5pm today.

Read IceNews for updates.

PRESS RELEASE FROM THE ICELANDIC PRIME MINISTER’S OFFICE:

Reykjavik, Iceland – 17 November 2008 – In the wake of the recent international financial turmoil, Iceland’s economy is facing a banking crisis of extraordinary proportions. The economy is heading for a deep recession, a sharp rise in the fiscal deficit, and a dramatic surge in Read the full story

PRESS RELEASE FROM THE ICELANDIC PRIME MINISTER’S OFFICE:

The Faroe Islands have offered Iceland a loan of DKK 300 million. The offer was put forward at a meeting in Helsinki, Finland, where Icelandic, Faroese and other Nordic politicians and officials are attending the Nordic Council Session. Read the full story