Finance Minister: "Iceland Will Pay" Icesave Debt


11.4.2011

With the final results from the Icesave referendum giving a resounding "No", many politicians in the UK and Holland are already talking about taking Iceland to court, believing that the country no longer intends to pay anything on Icesave. Minister of Finance Steingrímur J. Sigfússon has, however, emphasised to the media that as far as payment to the British and Dutch is concerned, "nothing has changed."

As the Grapevine reported, the No camp made a far stronger showing in last Saturday's referendum vote than Gallup polls had been indicating. In the end, 59% said No to the Icesave agreement, while 39.6% said Yes.

The news prompted an immediate reaction from British and Dutch authorities. Chief Secretary to the Treasury Danny Alexander told the BBC in part, "It now looks like this process will end up in courts. We have an obligation to get that money back, and we will continue to pursue that until we do." The Dutch finance minister, Jan Kees de Jager, said that the time for negotiations are now "over", and that "the issue is now for the courts to decide."

Iceland's Minister of Finance, Steingímur J. Sigfússon, has nonetheless emphasised to the press that Iceland will pay back on Icesave.

"It is very important to underline that [the No vote] will not have any effect on repayment," he said in part. "We believe that repayment from Landsbanki branches will begin later this year, and so depositors will begin getting their money back."

How much of the Icesave debt claimed by the UK and Holland can be covered by Landsbanki's assets remains unclear, however. Estimates range from "all of it" to most of it. At this time, there is no clear answer.

Reaction to the No vote has been mixed. President Ólafur Ragnar Grímsson, in an address to the world, said in part, "The people have now spoken clearly on this matter on two occasions in accordance with the democratic tradition which is Europe’s most important contribution to world history. The leaders of other states and international institutions will have to respect this expression of the national will. Solutions to disputes arising from financial crises and failures of banks must take account of the democratic principles which are the foundation of the constitutional structure of the West."

Not everyone was impressed with the president's performance, however, as Leftist-Green MP Atli Gíslasson remarked, "I thought he was in a kind of champagne media bath. He was so happy, childishly happy, and he was delivering a very strong political message." Ragnheiður Ríkharðsdóttir, an MP for the Independence Party - who have long opposed the Icesave agreement - also said she felt the president's speech was inappropriate, in particular to hold a press conference right after the election results came in, instead of waiting for the government to respond first.

The ESA - the surveillance authority for the European Free Trade Association - has given Iceland two months to respond to a Letter of Formal Notice of May last year. This letter of notice informed Iceland that by refusing to pay the Icesave debt, the government has violated terms of the European Economic Agreement. "If Iceland continues to be in breach of the agreement, the case will be sent to the EFTA Court," the ESA statement promises.

Islandia acabara pagando o la desguazaran,con la city no se juega, y si se juega se pierde,

Islandia no debe nada, los que deben tienen nombre y apellidos o razon social. Que paguen ellos, y lo que falte, ya saben "garlic and water"

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O sea que si Botín tras una vertiginosa expansión en USA la pifia... tenemos que pagar en Hispanistán.

Es bueno saberlo, ¿a qué esperan para nacionalizar la banca dentro del territorio nacional?

Esto podría ser un Fukushima financiero..

El ministro islandés, que algo sabrá de Economía, pues se supone que no es un Solbes cualquiera, habrá sopesado las consecuencias que puede tener para Islandia el rechazar pagar aunque los islandeses, voto mediante, hayan demostrado la misma actitud inconsciente del Congreso Argentino, con los diputados aplaudiendo de pie el Default durante la breve estancia de Rodríguez Saa como presidente.
Vale que me digaís que Argentina está saliendo de su crisis gracias a un incremento de exportación de sus materias primas, pero dudo mucho que Islandia, dedicándose otra vez a la caza de ballenas pueda volver a figurar en la Champion's League de la Economía Mundial.

Probablemente han visto que últimamente la ONU está dando caña y no quieren acabar como Libia o Costa de Marfil...

(si Francia se sale con la suya no veo por qué UK no podría hacer lo mismo, encima apoyados por Holanda).

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Pues si es asi.. yo ya lo he visto todo. Estamos en una puta dictadura.

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Da igual lo que este buen señor sepa o deje de saber. Debe cumplir con la decisión de los islandeses o dimitir. Y los islandeses que apechuguen con las consecuencias, que son mayorcitos. Pero lo que está claro es que cada uno a su sitio. Que no olviden los politicuchos que están al servicio de la voluntad popular y no al revés... ¿o acaso debemos volver al despotismo ilustrado? " Es que es por vuestro bien..." Pues no señor. Y respecto a la banca, que disfruten de las tan cacareadas bondades de lo privado.

Glaciares no, ¡ballenas! Bueno, eso si el bloqueo no es llevado a cabo por la Armada de su Graciosa Majestad.

Es su decisión y su problema, que respeten el referendum!

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