Iceland crisis

Shockingly high interest rate!
October 28, 2008, 2:57 pm
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The Central Bank of Iceland has now issued new interest rate of 18 percent. For Icelandic economy this might mean further troubles for businesses which are already in trouble because of high dept, partly because of foreign dept and currency crisis.

The Central Bank of Iceland’s surprise six percent interest rate raise this morning to 18 percent is part of the deal agreed with the International Monetary Fund (IMF). According to chairman of the Central Bank, David Oddsson in a press conference this morning, raising interest rates is a sensible action to take at this time.


British might miss Fish and Chips
October 28, 2008, 2:53 pm
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Whend did Mr Mathiesen state unequivocally that Iceland would not honour its obligations?
October 24, 2008, 10:37 am
Filed under: banks, Iceland, Icesave, UK | Tags: , , ,

FT has now published the transcript of conversation between Mr. Darling and Mr. Mathiesen, the day before Darling stated:

“The Icelandic government, believe it or not, have told me yesterday they have no intention of honouring their obligations here.”

No where in the converstation Mr. Mathiesen stated that Iceland would Iceland would not honour its obligations.

In stead of offering help, Mr. Darling decided to very harmful action against the Icelandic people and harm both Icelandic companies and the people of UK, limiting the changes of Icelandic companies to get back there money in order to repay to the British public.

Bad weather in Iceland
October 24, 2008, 10:27 am
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Yesterday our international air port (Keflavik) was closed due to bad weather.  Air planes were diverted to Akureyri (in north) and Egilsstadir (in East).

Now the weater is getting back to normal, and plains are coming back to the Keflavik airport.

The Manchester schoolchildren, along with other passengers from the airplanes from London and Dublin, were supplied with blankets and pillows and overnighted at Akureyri Airport. They will be flown to Reykjavik this morning, where the planned part of their Iceland adventure can commence.
Two jets from Copenhagen had to land at Egilsstadir in the eastern part of Iceland where similar provisions were made

Iceland best place for press freedom
October 23, 2008, 1:42 pm
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cameraThe international journalists’ body, Reporters Sans Frontieres has published its annual report on global press freedom, The Guardian reports.

Iceland, Luxembourg and Norway jointly top the list of 173 countries, which takes into account different factors including freedom of speech, treatment of journalists and media ownership.

Terrorism laws can be abused to stifle dissent: UN rights expert
October 23, 2008, 10:17 am
Filed under: Uncategorized

Britain’s use of anti-terror laws to freeze the assets of failing Icelandic banks shows how such legislation can be abused for purposes other than originally intended, according to a UN independent expert.

“It is indicative of the risks that measures that are originally inserted into legislation in the name of fighting terrorism may have a spillover effect into matters which have nothing to do with terrorism,” said Martin Scheinin, the United Nations’ special rapporteur on the protection of human rights in the fight against terrorism.

Treasury plans £3bn loan to Iceland
October 22, 2008, 12:37 am
Filed under: banks, Iceland, Icesave, UK | Tags: , , ,

Now it seem that Britain will loan the Icelandic government 3 billion British pounds to pay back to the British people the money that they lost from Icesave.   This to nation that is the media has said was on verge of bankruptcy.  Nation that the British government used Terror law against and put on list with nations like Taliban and Irans.

This action alone has caused the financial crises to be much worse in Iceland than they needed to be.  Kaupthing bank went under after this hostile act of the British government, transactions of money has stopped of products Icelandic companies that have nothing to do with the banks and the reputation damage for Icelandic nation.

Iceland has been friendly neighbor nation with UK, they have many things alike.  When Iceland had problems this is what British government did.  There are 60 million people in Britain and 0,3 million in Iceland ie. Britain has 200 times more people than Iceland.  Mr. Brown used this situation to move the focus from his own problems from domestic problems towards small nation, that he knew in power of Britain’s size he could get away with.

Now it is clear that the Icelandic government will pay all their part of the deposit guarantee like it has always said it would!

I hope that Mr. Brown will now focus on his own problems at home rather than attacking Iceland.