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.

Attack on Iceland not helping Brown
October 20, 2008, 10:40 pm
Filed under: Iceland, UK | Tags: , ,

The Guardian has published new poll, were people are asked about Brown response to the crisis. It is obvious that the Browns attack on Iceland has not worked.

Asked whether Brown’s response to the crisis makes them more or less likely to vote Labour, only 13% say more, against 27% who say less. Most, 60%, say it has made little difference.

Iceland’s Renewable Geothermal Power
October 20, 2008, 8:01 pm
Filed under: Iceland | Tags: , , , ,

In the current crises, Icelanders are lucky to have Geothermal energy. More than 90% af homes use geothermal energy to heat there home, and while using the Geothermal enerty to heat up homes in the Reykjavik area it has already been used for electricity.

Here is new article from Scientific America:

Whereas district heating in Iceland is straightforward—naturally pressurized “low temperature” geothermal fields containing potable water at temperatures less than 300 degrees F (150 degrees C) are common throughout the country, according to Reykjavik Energy, the regional power authority that includes Iceland’s capital city—it wasn’t until the first oil shock of the early 1970s that Icelanders got serious about exploiting their native energy resources.

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.

Icelanders heading back to the sea
October 20, 2008, 9:41 am
Filed under: Fish, Iceland | Tags: , ,

The bank crash has made the Icelanders focus back at the sea. Fishing has always been strong, with exports that used to account for almost all Icelandic export. Now it might increase the part of the nation’s income. With rising food prices in the world and continuing further innovation of creating ready meals has increased the value of fish.

The Wall Street journal has an article about the fisheries.

With shortage of foreign currency the fisheries will bring valuable currency back to Iceland, like it has in the past.

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.