Iceland Demands Data on Banks from Luxembourg Skip to content

Iceland Demands Data on Banks from Luxembourg

Iceland’s Minister for Business Affairs Björgvin G. Sigurdsson has requested from Luc Frieden, his counterpart in Luxembourg, that local authorities grant access to data on the daughter companies of the Icelandic banks in Luxembourg to everyone involved in the investigation of the collapse, and the events leading up to the collapse of the Icelandic bank system.

Minister for Business Affairs Björgvin G. Sigurdsson. Copyright: Icelandic Photo Agency.

Sigurdsson told Morgunbladid last week that the daughter company of Kaupthing in Luxembourg will not be sold until access to the aforementioned information has been secured. Luxembourgish authorities are leading the sale of Kaupthing in Luxembourg but Icelandic authorities have to agree to it first.

“There are extensive interests at stake, also for Luxembourgish authorities, that Kaupthing [in Luxembourg] will not go bankrupt. Massive amounts are at stake, a great number of deposits and other claims that would fall on the Luxembourgish and Belgian state with very serious consequences for their bank systems,” Sigurdsson said.

“So there are great interests at stake for both parties,” the minister emphasized. “For us in relation to the investigation, while they have financial interests.”

A spokesperson at the Luxembourgish Financial Supervisory Authority told Morgunbladid that there is nothing preventing Icelandic and Luxembourgish authorities from cooperating as long as laws are complied with.

If Kaupthing in Luxembourg goes bankrupt, old Kaupthing will be held responsible for its daughter company. If that happens, the insolvency process of Kaupthing in Iceland would become more complicated. The bank requires ISK 20 billion (USD 170 million, EUR 127 million) in equity to become operable again.

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