Iceland crisis

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.


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.

Kaupthing repays customers
October 20, 2008, 1:32 pm
Filed under: banks, Finland, Iceland | Tags: , , ,

Iceland’s biggest bank Kaupthing, which was nationalised earlier this month, will borrow money from three banks in Finland to repay deposits to customers there, the Finnish financial supervisory agency said on Monday.

‘Nordea Bank Finland, OP-Pohjola Group and Sampo Bank have agreed on a fixed period financing to enable the Kaupthing Bank’s Finnish branch to pay its customers back their deposits with interest,’ the agency said in a statement.

The trouble of British Councils
October 20, 2008, 12:44 am
Filed under: banks, Iceland, UK | Tags: , , , , , ,

Now many councils in Birtain have huge trouble ahead of them. Not only because many of them invested their money in to the Icelandic banks, but many companies are not paying their taxes:

The troubled retail giant Woolworths wrote to every council with a store in its area to announce that it was suspending payments of business taxes, known as national nondomestic rates, and cancelling its direct debits to councils. The company will move payments due in the last quarter of this year to after Christmas.

To the question why the councils were advice to invest their money has the LGA chairman Margaret Eaton said:

This isn’t the time for a blame game. This is an unprecedented situation, the extent of which could not have been foreseen. However, at the appropriate moment, there needs to be a full and independent inquiry to find out just how these banks continued to get relatively strong credit ratings until a few days before they went under.

May be Eaton could look back at her own prime minister, which had great impact. Darling said on Wednesday, Oct. 8:

“The Icelandic government, believe it or not, have told me yesterday they have no intention of honoring their obligations here.” Darling has not yet disclosed what official communication underlies his statement. On the Oct. 10, Gordon Brown, the U.K. prime minister, stated in an interview with the BBC, that “We are freezing the assets of Icelandic companies in the United Kingdom where we can. We will take further action against the Icelandic authorities wherever that is necessary to recover money.”

That day before, a telephone conversation took place between Arni Mathiesen, the Icelandic minister of finance, and Alistair Darling, the chancellor of the Exchequer. Mathiesen claims that nothing in this telephone conversation can support the conclusion that Iceland would not honor its obligation to insure its part in the deposits of IceSave, as stated in Icelandic law.

The clumsy way of communication of the British ministers and the way they wanted to get foreign guys to blame their own trouble has made the trouble even worse for the people that had money in these accounts. Compared with the solution that the Dutch government has made with the Icelandic one, where the Dutch people are guaranteed there money back, and only through one channel. But not just first to claim from Iceland and then from there own government.

Panic at banking counters???
October 20, 2008, 12:14 am
Filed under: banks, Iceland, Uncategorized | Tags: ,

Spiegel tells about bank desperation in Iceland.

This sounds like the story that first started when Glitnir bank was taken over by the national bank. Then I read story about many people waiting in line to get their money. But there was no line, no panic.

The same thing is going on right now. There is no panic.

The central government has guaranteed all deposits, like most countries around Iceland.

The only real problem is that Iceland is the country around the world, that is closest to have only electric payment, with 80-90% of all payments done electrically. When people come in lines to collect their money on paper there is lack of currency. That is the reason for it takes some time to get more currency and moving from the electric payment mode, back to paper.

Several hundred become thousands
October 20, 2008, 12:02 am
Filed under: banks, Iceland | Tags: , ,

There have been many stories floating around how many protested on Friday.  I have heard rumors from only few and the biggest that there were really 5.000 people there. The truth is that there were several hundred there. 

Compared with demonstration held here in Iceland on 1. April, were rocks and eggs were thrown and the demonstrator were really showing there feeling this demonstration was calm and peaceful. 

It shows the feelings over here that in all the crisis only few hundred were willing to show up for demonstration at this time.  

If there was real heat you would expect some of the hundreds of bankers laid of to show their support, or the thousands of Icelanders that lost money on the banks.   Money that people thought was safe.