Iceland Sees Light at the End of the Icesave Tunnel Skip to content

Iceland Sees Light at the End of the Icesave Tunnel

Prime Minister of Iceland Jóhanna Sigurdardóttir told reporters at Hilton Reykjavík Nordica yesterday that the agreements with British and Dutch authorities on the state guarantee regarding the Icesave loans are well underway.

Prime Minister Jóhanna Sigurdardóttir. Photo by Geir Ólafsson.

The Icelandic parliament, Althingi, introduced preconditions to the original agreements in late August and British and Dutch authorities made their standpoints known last week.

“We wanted to finish this matter a long time ago because so many other things are involved,” Sigurdardóttir said, according to Morgunbladid. “Loans from the Nordic countries are at stake and the review of our program at the International Monetary Fund.”

“The representatives of the nations are in discussions and I hope that we can have a conclusion by the end of this week,” the prime minister added.

Regarding what actions the government intends to take to abolish the currency restrictions, Sigurdardóttir said they needed to be abolished gradually. Lowering the policy rate is also necessary, she added.

In response to questions on whether China would be considered a partner in the restoration of Iceland’s economy, Minister of Finance Steingrímur J. Sigfússon revealed that diplomatic relations between Iceland and China are growing.

However, Sigfússon said he was aware that China had acquired natural resources around the world and that he opposed such acquisitions in Iceland. In such a case, the minister said it would be better to consult neighboring countries.

It was reported recently that a Chinese aluminum giant was interested in buying shares in geothermal energy company Theistareykir ehf. in north Iceland.

Click here to read more about that story.

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