Iceland’s embattled minister to meet with government

Embattled Gylfi Magnusson, Iceland’s trade minister, has been invited to a meeting with both government coalition parties this morning. The subject of the meeting will be foreign currency indexed loans.

The spotlight has been firmly on Magnusson recently after it came to light that lawyers from a company called Lex had stated they believed such loans were illegal in a report made for the Central Bank of Iceland over a year ago. Central Bank lawyers independently came to the same conclusion – as well as a legal expert in the trade ministry. Magnusson’s answers in parliament at the time did not reflect this information and the illegality of such loans was not confirmed until a Supreme Court ruling this spring. Magnusson himself admits that his answers could have been clearer; but says he did not lie.

Head of the Progressive Party, Sigmundur David Gunnlaugsson, this weekend asked why the issue was not dealt with fully when Arion Bank and Islandsbanki were transferred over to the old banks’ creditors – and it was decided that Landsbanki would continue to be owned by the state.

Magnusson still enjoys the support of both ruling parties, despite himself being an unelected minister.

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