Icesave Negotiator: Possible to Take Dispute to Court Skip to content

Icesave Negotiator: Possible to Take Dispute to Court

icesave-logoLárus L. Blöndal, the opposition’s representative in Iceland’s Icesave negotiation committee, said it is possible to take the Icesave dispute between Iceland, the UK and the Netherlands to court, and court procedures have in fact begun with EFTA Surveillance Authority’s letter to the Icelandic government.

However, one could say that there is now ISK 450 billion (USD 3.8 billion, EUR 2.8 billion) less of a reason to take the dispute to court than one year ago because the current agreement is much more beneficial than the one rejected in a referendum on March 6, Blöndal told

One could also look at the matter within the context of the amount the state has contributed to bail out the Icelandic savings banks, Blöndal added, pointing out that while the Icesave dispute can be concluded at a relatively low cost it was recently decided to pay ISK 20 billion (USD 170 million, EUR 125 million) from the state budget to Sparisjódur Keflavíkur alone.

Blöndal said he will not state his opinion on whether President Ólafur Ragnar Grímsson made the right or wrong decision in not confirming the new Icesave legislation but instead sending it to a national referendum, but judging by discussions at the Icelandic parliament, Althingi, it doesn’t appear that better terms can be achieved with new talks.

Blöndal explained that if the new Icesave legislation is rejected in the upcoming national referendum it is likely that the next step will be to take the dispute to the EFTA court, which poses a certain risk.

Click here to read more about ESA’s letter and here to read more about the president’s decision and reactions to it.

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