Iceland Prepares to Answer Icesave Counteroffer Skip to content

Iceland Prepares to Answer Icesave Counteroffer

The governments of the UK and the Netherlands made the Icelandic government a counteroffer on the terms of the Icesave loan last weekend. The leaders of the government parties and the opposition are meeting at noon to decide how to answer.

Iceland’s political leaders failed to come to a joint conclusion after a three-hour meeting last night. However, both the government and the opposition agree that the counteroffer cannot be accepted in its current form, reports.

The UK and the Netherlands are considered to have made too high demands on an interest premium on top of changeable interest rates. According to Morgunbladid, the suggested interest premium is 2.75 percent.

The counteroffer includes a change to the interest terms but is not based on the solution presented by the Icelandic negotiation committee.

The committee suggested that no loan is needed to cover the amount paid by the British and Dutch governments to compensate the Icesave depositors in their respective countries as the bankruptcy estate of Landsbanki might suffice for repayment.

“This move by the Brits and Dutch is absolutely askew to what we have been discussing [in London] and in fact also askew to what we discussed in The Haag,” commented Sigmundur Davíd Gunnlaugsson, chairman of the Progressive Party.

“I am going to allow myself to hope that we can reach an agreement,” said Prime Minister Jóhanna Sigurdardóttir after yesterday’s meeting.

Click here to read more about Icesave.

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