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 Political Leader Calls For Debt Moratorium As Government Crumbles

REYKJAVIK, Iceland — A leading member of the Icelandic parliament called Monday night for the country to declare a debt moratorium and stop attempting to pay the $6 billion which the British and Netherlands governments are seeking to extort from Iceland with the help of the International Monetary Fund and the European Commission in Brussels. This dramatic call was issued by Birgitta Jónsdóttir, the chairman of the parliamentary faction of The Movement in the Icelandic parliament, the Althing. Birgitta Jónsdóttir was speaking during a special session of the Althing called to address the rapidly deteriorating economic and financial position of Iceland, one year after the collapse of the three hot-money offshore banks, Landsbanki, Kaupthing, and Glitnir. website - 08-Oct-09. Centre for Researchon Globalisation website - 08-Oct-09.


Landsbanki Guernsey savers have turned their backs on the States this
lunchtime, literally.

The symbolic gesture happened at 12.30pm on the Royal Court steps, as
depositors mark the one-year anniversary of the bank's collapse.

Their action group say they want to show their total lack of confidence in
the local government.

They will also be holding a one-minute silence to remember savers who have
died in the last year, and those who have lost their entire life-savings.  News Centre, Island FM website - 07-Oct-09.

Deal Nears on Iceland Loan Terms

Iceland, the U.K. and the Netherlands are closer to agreeing on loan terms for Iceland to repay extensive losses of foreign savers in the collapsed Icesave internet bank, as all sides become "embarrassed" by the dispute's delay of an International Monetary Fund program, said Iceland Finance Minister Steingrímur Sigfússon.

"I feel there is a real will now to move ahead," said Mr. Sigfússon in an interview, after what he described as good meetings on the issue with his British and Dutch counterparts at the IMF's annual meeting in Istanbul. He said the situation in the U.K. in particular had changed as the issue of lost Icelandic savings moved out of the newspaper headlines there. . .

Mr. Sigfússon declined to discuss details of his talks with the Dutch and British finance ministers. But he said one major sticking point remains that the U.K. and Netherlands want a guarantee they will have been paid back in full in 15 years. Wall Street Journal website - 06-Oct-09.

Landsbanki Guernsey to take legal action against Iceland

The administrators of Landsbanki Guernsey will take their case to Iceland's courts should they be unsuccessful in their efforts to maximise returns for depositors caught up in the bank’s collapse last year. . .

The move followed a vote in which what Deloitte said was an overwhelming majority of depositor creditors voted in favour of such action. . .

“Having seen depositors in IceSave being bailed out by UK and Dutch governments, [the depositors and administrators] are naturally aggrieved, and are further aggravated by seeing those governments now being prioritised over them,” Deloitte said in a statement.  International Adviser website - 16-Sep-09.


See Also: Guernsey Press website - 'Court says liquidators can sue Icelandic government'

Jersey Parliament expected to give final approval to draft depositor compensation scheme next month

The Jersey States Assembly is expected to give final approval to a draft depositor compensation scheme (DCS) on 20 October.

Implementation could follow within weeks, according to sources familiar with the situation.

As previously reported by IA, the States Assembly approved the DCS plan in principle in July. It then went to a government scrutiny panel, where it is understood some proposed changes, thought not to be of a substantive nature, were to have been discussed by a panel of experts. . .

Although details of how the DCS would be funded under the version currently being considered are not known, it is believed that the monies would be collected from the island’s banks only if a problem arose that triggered the scheme, and that there may be a cap on the amount that banks would be asked to contribute in any one year. 

 Among the issues the scrutiny panel are said to be addressing are the speed with which the scheme would pay out in the event of a bank failure, and whether the group charged with managing the scheme in the event it were to be triggered should be chosen in advance. International Adviser website - 09-Sep-09.


The Icesave bill

IN RETROSPECT, parliamentary approval to apply for European Union membership was easy. The Icelandic prime minister, Johanna Sigurdardottir, is finding it far harder to persuade Iceland’s parliament, or Althingi, to ratify the Icesave agreement her government struck in June. . .

Ms Sigurdardottir calls the Icesave debate “the most important issue that any Icelandic parliament has been required to address”. The government argues that most of the debt will eventually be covered by the sale of Landsbanki assets. It also insists that the deal is an essential part of clearing up Iceland’s financial mess. Loans from the IMF and Iceland’s Nordic neighbours, worth some $5 billion, are on hold pending its approval. If debate drags on for too long, Iceland’s credit rating, already close to junk, could be downgraded again—and that would threaten the chances of a recovery.

Yet by mid-week it seemed unlikely that the parliament would accept the Icesave deal unconditionally. The question was whether it could attach enough strings to satisfy public opinion without undermining the deal altogether. . . The Economist website - 13-Aug-09.

Landsbanki depositors to receive chunk of trapped savings

Landsbanki joint administrators, Deloittes, says savers can expect to receive another 25% of their money within weeks.. . .

In a statement, Deloittes says: "The Joint Administrators anticipate making a further substantial payment in late 2009 / early 2010, however the exact timing and quantum of this payment will depend on further recoveries from the Bank's loan portfolio and distributions from Heritable Bank." . . .

Currently, Landsbanki Guernsey depositors are treated as a non-preferential creditors, [In Iceland] whereas the UK Government made sure the UK branch's members were treated as preferential and therefore entitled to more compensation, says spokesperson for the LGDAG Neil Dickens.

He suspects the Guernsey Government's state trip is a knee-jerk reaction to claims by the action group that Guernsey deceived Landsbanki depositors about meetings that had taken place between the Jurisdiction and Iceland. However, he welcomes the move.  IFA Online website - 07-Aug-09.

Landsbanki action is 'concerning' - BBC 29/07/09

“Guernsey investors have accused the Chief Minister of not doing enough to help them over the failed Icelandic bank Landsbanki. Lyndon Trott met with depositors in October 2008 and pledged to help them. But a Freedom of Information Act request showed the State's treasury had held no meetings on the matter with the British Ministry of Justice… [The chairman of the Landsbanki Guernsey Depositors Action Group (LGDAG)] said: ‘We were told repeatedly that countless meetings had been taking place with the Treasury and the Ministry of Justice. The key issue is that the Ministry of Justice is responsible for representing Guernsey from an external threat and the Icelandic banking crisis is an external threat.’”  UK Freedom of Information Blog - 06-Aug-09.


Documents 'implicate' Guernsey in Landsbanki saver saga

New documents have come to light revealing how the Guernsey government failed to push for the recovery of savings of collapsed bank Landsbanki Guernsey, an action group claims.

Landsbanki Guernsey Depositors' Action Group (LGDAG) says the state failed to adequately represent depositors whose savings were trapped.   IFA Online website - 31-Jul-09.


EU kick-starts Iceland's accession

Just days after Iceland filed its application to join the European Union, EU foreign ministers meeting in Brussels today (27 July) are expected to accept it and ask the European Commission to draft an opinion.

Diplomats told EurActiv they were confident that the EU foreign ministers would forward Iceland's application to the Commission for an opinion - a thorough screening of the candidate's credentials based on answers to a questionnaire. 

The procedure, which follows Iceland's formal application on 16 July, is progressing much more quickly than with other candidates, diplomats pointed out.  EurActiv website - 27-Jul-09.

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