30-Mar-2016: Liquidators' Update, see Deloitte site

Iceland faces Icesave cash squeeze

REYKJAVIK (Reuters) - Iceland faced an extended cash crunch on Friday after failing to reach a new debt deal with Britain and the Netherlands.


Prime Minister Johanna Sigurdardottir held out the possibility of a last-minute deal over some $5.5 billion (3.6 billion pound) of “Icesave” debts despite the abrupt collapse of discussions on Thursday.


Time is running short, as a referendum is scheduled for March 6 over a previous repayment deal.


Voters are expected to reject that accord, putting the government under pressure and further postponing the prospect of financial aid to help revive the stricken economy.


The International Monetary Fund and Nordic countries have promised to loan cash-starved Iceland around $4.5 billion to help it to remove capital controls and get the economy moving again. But this is all on hold pending resolution of the Icesave debt.


“Nobody dares invest anything in Iceland until this issue is resolved,” said Lars Christensen, senior analyst at Danske Bank in Stockholm.  Businessmortgageprovider website - 26-Feb-10.