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

Other Sources

This page contains brief summaries of and links to media reports from the source Other Sources.

Iceland’s President urged to reject Icesave bill [with video clip]

Angry Icelanders are petitioning their president, putting pressure on him not to sign a controversial bill that has divided the North Atlantic island.

Tens of thousands of signatures opposing the so-called Icesave legislation were delivered to his official residence.  Euronews website - 02-Jan-10.

Landsbanki Guernsey administrators announce third distribution

The joint administrators of the Guernsey branch of the failed Icelandic bank Landsbanki said a third distribution to creditors of between 11 and 12.5p in the pound will take place in January.

They also updated their estimate for the ultimate recovery for creditors to be between 85 and 91p.

Deloitte said the increase reflected "the largely successful realisation of assets in 2009 driven, in part, by better-than-feared market conditions, and the intense efforts of the administration team".

It added that these estimated returns were still subject to "a wide range of factors primarily connected to the UK residential property market, many of which are outside of the joint administrators control, which may result in the actual return being lower or higher than this range".   International Adviser, 17-Dec-09

Also: Deloitte to recover 90% for Landsbanki creditors, Accountancy Age, 18-Dec-09

Sailing Carelessly Through Unchartered Waters: The Absence Of Risk In Icelandic Business And Politics

Were the movers and shakers in the Icelandic business and political elite so sure of not having to face any personal consequences of their actions that they were oblivious to the risks they were taking? . . .

Likewise you could be forgiven for thinking that Icelandic business circles were corruption free. White collar crimes were rarely investigated or prosecuted, least of all those of any significant scale. Bjorgolfur Gudmundsson was convicted in the Hafskip affair in the mid-eighties but his reward from the Independence Party turned out to be the gift of a newly privatized Landsbanki. After running that bank into the ground at a huge cost to the Icelandic taxpayer, Bjorgolfur and his son have not been charged with anything serious and their lawyers are hard at work making sure that their assets are left as untouched as possible and that only one of them can be made bankrupt, the older one.   Economic Disaster Area website - 16-Dec-09.

LGA issues legal threat over Icelandic investments

Councils have threatened to legally challenge a decision not to make local authorities priority creditors on the recovery of investments in a failed Icelandic bank.

The Winding Up Board of Glitnir Bank, in which local authorities have deposits of £217m, has opted to specify the claims as ‘general unsecured’ rather than ‘priority’ under the Icelandic Bankruptcy Act.

Without priority status, authorities would be likely to get in the region of 25-30% of their deposits back rather than 100%. . . .

Glitnir’s decision is at odds with that of Landsbanki, where council deposits of £414m were last month recognised as priority  claims.   Local Government Chronicle website - 15-Dec-09.

Iceland Is Sacrificed to Save EU: Shame on Britain and Holland

The European Union, in order to save itself from the faults of its own legislation, has decided that Iceland and the Icelandic people are expendable. Realising its own failures the EU has decided, through the British and Dutch governments, that the Icelandic authorities have to shoulder the responsibility which is rightfully the EU regulators’. This is what the so-called Icesave dispute is mainly about. . .

The EU legislation in question is Directive 94/19/EC on deposit guarantee schemes which was implemented into Icelandic laws in 1999 according to the EEA Agreement between the EU and EFTA which Iceland is a member of. . .

However, the directive does not anticipate a systemic crisis as undoubtedly occurred in Iceland in October 2008 but only a failure of a single bank. In other words there is simply no legislation in force which covers the situation that emerged in Iceland last autumn. Moreover, it should be kept in mind that the Icelandic financial sector is more or less regulated by the EU through the previously mentioned EEA Agreement. . .

There is as a result no mention of a state guarantees in Directive 94/19/EC (Directive 94/19/EC of the European Parliament and of the Council of 30 May 1994 on deposit-guarantee schemes) for the obligations of the Guarantee Funds should they under any circumstances fail to fullfill them towards depositors. On the contrary the directive clearly states that the deposit guarantee scheme „must not consist of a guarantee granted to a credit institution by a Member State itself or by any of its local or regional authorities“.  The Brussels Journal - 05-Dec-09.

Iceland agrees to repay Icesave debts

Reports have confirmed that the Icelandic parliament voted in favour of repaying the UK and Dutch governments more than £3billion. . .

Around 400,000 people lost money from savings accounts due to the collapse of Icesave’s parent company Landsbanki last year.

The agreement was initially made in June, but was only passed after an amendment was added setting various limits to the payments.  The total amount that will be paid back by the country has been limited based on the level of its gross domestic product (GDP).

Iceland will have to pay up to 4% of its GDP every year to the UK and a further 2% to the Netherlands.   Loans, Mortgage and Personal Finance Guide - 04-Dec-09.

Saga of KS&F(IoM) collapse plays out in Tynwald

Hearings into the October 2008 collapse of the Isle of Man branch of Iceland’s Kaupthing Singer & Friedlander have captured the attention of IoM residents and KS&F(IoM) depositors, many of whom feel the full story has yet to be told. . .

Thus it was on 8 October,  he [Donald Gelling] went on, “without warning or having given notice of their intentions to the FSC or, I must say, KS&F(IoM)”  the UK Treasury and the FSA "combined to order the transfer of the majority of KS&F(UK)’s retail deposits" -- including those belonging to KS&F(IoM) -- to ING Direct, and placed the UK arm of Kaupthing into administration. . .

As recently as last month the Landsbanki Guernsey Depositors Action Group, which represents depositors in the failed Guernsey institution, sent a petition to all States of Guernsey deputies calling on them to demand “a full public inquiry” into Landsbanki Guernsey’s collapse. 

Mark Ashbey, a member of the LGDAG, said the Isle of Man deserved credit for its "willingness to allow a Tynwald Select Committee to publicly examine the causes behind Kaupthing’s failure” and whether possible shortcomings on the part of the  island’s  regulator contributed to it. International Adviser website - 18-Nov-09.



Iceland eyes Icesave approval, boosts EU bid

Iceland's foreign minister is confident parliament will approve by next week an amended bill to repay billions of dollars to Britain and the Netherlands, boosting the country's chances of joining the European Union.

"I am pretty confident that it will go through. Narrowly, but it will go through by next week," Ossur Skarphedinsson told Reuters in an interview on a visit to Brussels. . .

Bickering over the Icesave issue has held up the release of IMF funds, which are dependent on the island successfully negotiating a review by the Washington-based global lender.

The dispute has also clouded Iceland's bid to join the EU — launched earlier this year — souring public opinion in the north Atlantic country towards the 27-nation bloc. Reuters Report on News Centre, MoneyControl website - 18-Nov-09.


IMF Completes First Review Under Stand-By Arrangement with Iceland

At the request of Iceland’s authorities, the Board also extended the SBA by six months to May 31, 2011 to compensate for delays in program implementation and review, and approved the rephasing of the undisbursed amount over the remainder of the arrangement. The completion of the first review enables the immediate disbursement of SDR 105 million (about US$167.5 million), bringing total disbursements under the program to SDR 665 million (about US$1,061.1 million).  The Financial Global News Channel, US, website - 29-Oct-09.

Iceland to have review of its IMF programme

(Bloomberg)  The planned first review of Iceland's International Monetary Fund (IMF) programme paves the way for the removal of capital controls, the island's central bank said in a report published yesterday.

Iceland's central bank, Sedlabanki, announced on August 5 that it would begin the gradual removal of capital controls on November 1. That plan was jolted by the repeated delays in reviewing the island's IMF economic programme, first scheduled for February.

The IMF board now plans to review Iceland's programme tomorrow, following Iceland's agreement with the UK and the Netherlands on depositors' guarantees for failed lender Landsbanki Islands hf.  Irish Independent website - 27-Oct-09.

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