Iceland's President Calls for Changes at Central Bank Skip to content

Iceland’s President Calls for Changes at Central Bank

President of Iceland Ólafur Ragnar Grímsson said in an interview with the BBC yesterday that one of the projects of the new government is to undertake changes to the board of the Central Bank.

“In the discussions that I have had with the parties that will form a new government after a few days it is absolutely clear that one of their main projects is to change the board of governors at the Central Bank,” Grímsson said, according to Fréttabladid. “The laws on the bank need to be amended and the board of governors reorganized.”

President of Iceland Ólafur Ragnar Grímsson. Copyright: Icelandic Photo Agency.

The president said that in light of the recent series of protests it is clear that the formation of a new government will lead to increased cooperation and stability in the Icelandic community, adding that he hoped that the new government will improve the reputation of Icelanders, which had suffered significantly after the collapse of the banking system.

Grímsson added he was hopeful that since persons who had been in authority when the banks collapsed were about to step down, and since other such changes were imminent, Icelanders would prove themselves as a nation prepared to undertake measures in a responsible and democratic manner and even provide a good example for other nations that were also struggling economically.

Shortly before noon yesterday, the president entrusted the leaders of the Social Democrats and the Left-Greens with forming a new government. The parties then began discussing the appointments for the new administration as well as its platform. Discussions are ongoing.

Outgoing Foreign Minister and chairwoman of the Social Democrats Ingibjörg Sólrún Gísladóttir said that some of the issues they were working on concerned necessary reform in society following the collapse of the banking system.

“It is, for example, necessary to review the laws on the responsibility of ministers; ethical regulations need to be established for ministers and the administration,” Gísladóttir said. “I believe certain changes regarding the Central Bank have to be made and we have to be able to guarantee that it is controlled by a professional leadership that is above all doubt.”

Click here to read more on the president’s views on what the new administration should stand for.

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