Iceland Promises to Pay Icesave Interest Skip to content

Iceland Promises to Pay Icesave Interest

In a new declaration of intent to the International Monetary Fund, the government of Iceland promises to repay in full the cost of Landsbanki’s Icesave deposits to the British and Dutch states, in addition to “normal” interest rates.

The IMF board agreed to review its economic stabilization program for Iceland on Friday, which enables the disbursement of loans. The Icelandic government then issued a declaration of intent, describing the program’s success so far and its future goals, Fréttabladid reports.

Icesave is referred to in a special item of the declaration. The Icelandic government iterates that the Icelandic state will repay the minimum deposit insurance of the Icesave accounts to the UK and the Netherlands.

The declaration also states that the Icelandic government has assured its negotiation partners that they will receive normal interest rates because of their expenses in relation to Icesave if an agreement is reached that all can be content with.

“Iceland is prepared to complete the negotiations with the British and Dutch governments on the legal and financial obligations in this matter as soon as possible,” the declaration reads.

The IMF board would not review the economic stabilization program for Iceland until the item on Icesave was added to the declaration of intent.

No formal Icesave negotiations have taken place since the national referendum in March.

Click here to read more about the IMF completing its second review of the economic stabilization program for Iceland and here to read more about Icesave.

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