| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : EU Economy Last Updated: Feb 18, 2011 - 5:17 AM

Icelandic parliament supports latest deal with UK/ Netherlands on Icesave €4bn debt issue
By Michael Hennigan, Founder and Editor of Finfacts
Feb 17, 2011 - 4:04 AM

Email this article
 Printer friendly page
Ásta Ragnheiður Jóhannesdóttir (r) the Speaker of Iceland's parliament, the Althingi, receives a report on the banking collapse on April 12, 2010. Behind her on the right is Jóhanna Sigurðardóttir, prime minister of Iceland.

Icelandic parliament supports latest deal with UK/ Netherlands on Icesave €4bn debt issue

The Icelandic parliament, the Althingi, on Wednesday voted support for a bill confirming the latest agreement reached between Iceland, the UK and the Netherlands on the Icesave €4bn debt issue.

The result was a strong majority of more than two-thirds approval for the new agreement. A total of 44 MP´s voted in favour of the agreement , 16 MP´s opposed and 3 MP´s abstained.

The bill waits the formal approval of Iceland's president.

"The result of the voting today, with such a strong majority of the Parliament approving the new agreement, is extremely important. The voting will undoubtedly have a positive impact on the Icelandic economy and help the country achieve it's goals in restructuring the economy. Too date much progress has been made in getting Iceland back on track and the resolution of the Icesave issue is a huge step in that direction," Steingrimur J. Sigfusson, minister of finance, said.

When the Icesave online bank collapsed in 2008, €4bn in deposits from 300,000 British and Dutch depositors, including local governments, were at risk.

Iceland was required by EU rules to maintain deposit insurance for its banks and when Landsbanki Islands bank collapsed, its Icesave unit also crashed.

The deposits were attracted by the highest interest rates in the UK and the Netherlands. The British and the Dutch governments refunded the deposits and Gordon Brown's government used the UK Prevention of Terrorism Act to freeze the transfer of funds from the UK.

Landsbanki Islands bank is still being unwound and Iceland will recover some funds from the wreckage but last year a long-term repayment deal on Icesave was rejected in a referendum.

The latest deal cuts the average interest rate to 3.2% compared with 5.55% in the rejected deal; interest payments would commence immediately and principal repayments in 2016, with repayments spread over a maximum of 37 years.

In excess of 30,000 people - - almost a tenth of the Icelandic population - - have so far backed a petition to Ólafur Ragnar Grímsson, the Icelandic president, to hold another referendum.

Sovereign default can seem like a panacea to some but it's not easy for countries to draw a line under international obligation, despite questions of morality.

"Iceland has been able to recover because we let the private  banks fail...and we could devalue," Ólafur Ragnar Grímsson, president of Iceland told CNBC in Davos last month. The IMF  program will probably be over later this year and the country is on the road to recovery, he said. He also discussed the country's plans to join the EU:


Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

EU Economy
Latest Headlines
Spain's strong recovery to slow in the next few years
Italy's Mezzogiorno is Achilles' heel of Euro Area - lowest birth rate since 1862
Euro Area GDP grows at weak 0.3% in Q2 2015
German GDP up 0.4% in Q2 2015; France's GDP stagnates
Germany's Surplus: Lots of critics; Credible solutions scarce
Euro Area industrial production dips in June and May after a flat April
Greece faces two years of recession according to EU officials
High EU youth unemployment rate not as bad as it seems
Eurozone retail PMI surges to highest since January 2011
ECB monetary policy still tight for Southern Europe
German exports fell in June — surplus at record; Exports up 13.7% year-on-year
Eurozone manufacturing sector continued to expand in July
Weak euro unlikely to have significant impact on Euro Area growth
Is Euro Area Ireland's top trading partner?: EU28 is overwhelmingly UK's
German car firms boost exports from Spain, UK, Portugal, Czech Republic, Slovakia, Hungary and Romania
Flash Eurozone manufacturing/ services PMI close to four-year high despite Greek crisis
Krugman calls euro a Roach Motel; Hotel California gets 1-star grade
Greece & Euro Crisis: July 2015 articles from Finfacts
Greece and other poor countries in Euro Area will not become rich
Euro Area manufacturing/ services PMI hits four-year high in June
Western European car market: Recovery continues
Greece could become a failed state like Venezuela
Multinational companies pay on average 30% less tax than domestic competitors in EU
EU's list of 30 tax havens omits the biggest 4 in Europe
China to invest in Juncker's European investment fund
Greek talks collapse; Game theorists gambling with future — Germany's vice-chancellor
German exports and industrial production in strong rises in April
Tackling Inequality: Scandinavian countries have the most successful welfare systems in Europe
Eurozone unemployment fell by 130,000 in April 2015 — down 849,000 in 12 months
Eurozone service sector business activity slowed during May
German 2015 GDP forecast cut; Jobless level at 24-year low
Eurozone manufacturing in modest acceleration in May
FDI into Europe at record in 2014; UK on top: Germany location for future investment
Eurozone economy loses growth momentum; Jobs growth rises
Athens leak suggests Juncker has plan for Greece
Draghi will not end QE early but warns of risks
Eurozone grows faster than US and UK in Q1 2015
German GDP at slower pace, France faster in Q1 2015
Germany may cut income tax; Germans still shun risky investments
Germany had record exports and imports in March 2015