Icesave Discussed in Iceland’s Budget Committee Skip to content

Icesave Discussed in Iceland’s Budget Committee

By Iceland Review

The representatives of all parties in the Althingi parliament’s Budget Committee (previously referred to as the Economic and Tax Committee), apart from the Progressive Party, worked on securing the proposed amendments to the government’s Icesave bill, which were approved by the majority of MPs in parliament on Friday, in their meeting last night.

Inside Althingi. Copyright: Icelandic Photo Agency.

According to Morgunbladid’s sources, it was emphasized that the state guarantee on the loans granted by the UK and the Netherlands to the Icelandic Depositors’ and Investors’ Guarantee Fund would be dropped in 2024, regardless of whether the loans had been repaid or not.

The Icesave agreement, signed by Icelandic, British and Dutch authorities in June, states that the Icelandic Depositors’ and Investors’ Guarantee Fund will not start repaying the loans until 2016.

The Budget Committee also discussed how it could be implemented that the state guarantee would only be valid if British and Dutch authorities agreed to the disclaimers introduced by the Icelandic parliament.

The committee referred to this item as the “InDefence-disclaimer” after the InDefence campaign group, which has presented ideas in relation to the Icesave case.

According to Morgunbladid’s sources, the representatives of the coalition parties, the Social Democrats and the Left-Greens, on the committee emphasized that the Independence Party was on board so that as wide a reconciliation as possible be achieved.

The members of the Budget Committee have asked to be informed on all interactions between the Icelandic ministries and British and Dutch representatives in relation to its work.

Assistant to Minister of Finance Indridi H. Thorláksson said the diplomatic relations with the UK and the Netherlands are professional and taking a natural course. They have been informed of the disclaimers that the Budget Committee has made to the Icesave agreement.

However, neither British nor Dutch authorities wish to comment on the case or express their views on the disclaimers until Althingi has reached its final conclusion on the matter.

Click here to read more about Icesave.

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