Buchheit Meets Icelandic Finance Minister Skip to content

Buchheit Meets Icelandic Finance Minister

U.S. negotiator Lee C. Buchheit, who led Iceland’s last Icesave negotiation in 2010, met with Minister of Finance Bjarni Benediktsson last week to discuss Iceland’s planned talks with creditors of the banks, according to Fréttablaðið’s sources.

The talks are planned in relation with the new government’s promise to write off 20 percent of all indexed mortgages taken 2007-2010.

Minister of Finance, Bjarni Benediktsson. Photo by Páll Kjartansson.

This cannot be carried out before the estates of the failed banks have been settled, the capital controls lifted and a write down of assets by the banks’ creditors has been negotiated.

In April it was reported that foreign creditors of Glitnir and Kaupþing had hired Bjørn Richard Johansen, a Norwegian specialist in crisis management and public relations, to safeguard their interests in talks with Icelandic authorities.

Johansen worked on coordinating actions for the Icelandic government after the banking collapse in 2008.

According to Fréttablaðið, Buchheit is not the only debt specialist interested in assisting the Icelandic government in negotiating with creditors, lifting capital controls and finding a solution to the snjóhengja problem (foreign funds locked in Iceland because of capital controls which could make the Icelandic króna take a dive if released at the same time).


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