Britain Considers Icesave Deal with Iceland Closed Skip to content

Britain Considers Icesave Deal with Iceland Closed

“An agreement on Icesave has already been reached with Iceland,” were the reactions at the HM Treasury when asked about the disclaimers Iceland’s Althingi parliament plans to introduce to the agreement on compensating the Icesave depositors.

Inside Althingi. Copyright: Icelandic Photo Agency.

Morgunbladid was informed that British authorities are of the understanding that the Icelandic government will ensure that the parliament approves the agreement reached between Icelandic, British and Dutch authorities on June 5.

According to the agreement, Iceland will be provided with loans to honor its obligations towards Landsbanki’s Icesave account holders in the UK and the Netherlands.

It is good news for both Iceland and Britain that this case is about to be solved, the HM Treasury spokesperson concluded.

The Althingi parliament’s Economic and Tax Committee have presented disclaimers to the Icesave agreement on state guarantee as an addition to the original agreement. However, the legal experts Morgunbladid spoke with, say such disclaimers will lead to a new agreement altogether.

“It has to be evaluated in each individual case but if the content of an agreement is being changed, the agreement is being rejected and a new offer being made,” explained Lára V. Júlíusdóttir, advocate to the Supreme Court and a specialist in negotiation laws.

The Icesave agreement has caused fierce debates at Althingi. “Now all political parties are looking into working on this case in unison,” said Minister of Health Ögmundur Jónasson. “The viewpoints of everyone have to be listened to.”

“I think everyone has come to share the opinion that the agreement, as it is today, won’t work out, but that solidarity on terms and disclaimers has to be sought at Althingi and this is what is being discussed at the moment,” Jónasson added.

According to Morgunbladid’s sources, the Left-Green Movement, which forms the coalition government with the Social Democrats and to which Jónasson belongs, cannot support the Icesave agreement as it is and are seeking a cross-political solution.

The Left-Green MPs have sent proposals on disclaimers to the Icesave agreement in writing to all political parties in an attempt to reach a joint solution to the debate.

Click here to read more about the development of the Icesave debate.

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