Icesave causing Paris Club headaches

iceland-sattelite21The Icesave issue has been discussed more than once by the Paris Club, an organisation more used to talking about the debt problems of third world nations. Individual financial officials in the ‘club’ expressed their deep concern that Iceland’s hard stance could set an unwelcome precedent.

The Paris Club is an informal association of economic officials from 19 wealthy nations who meet every few weeks. The Club’s meetings take place in complete secrecy. At the meeting, wealthy creditor nations make decisions on how to deal with mainly third world debtor nations and work on the terms and schedule of repayments and whether to write certain debts off. Unanimity is key to the Paris Club, meaning for example that no single member nation can offer greater concessions to debtors than all the others, according to RUV.

The Icelandic state broadcaster attempted to interview members of the Club but was repeatedly brushed off by an organisation seemingly worried that Icelandic defiance could make the job of policing world debt a little harder.

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