IMF Declaration Amended in Light of Icesave Dispute Skip to content

IMF Declaration Amended in Light of Icesave Dispute

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A few days before the signing of the IMF’s loan to <?xml:namespace prefix = st1 ns = “urn:schemas-microsoft-com:office:smarttags” />Iceland, an amendment was made to the government’s declaration of intent, explicitly stating that Iceland promises to honor all its obligations on the basis of its deposit insurance scheme.

Davíd Oddsson. Copyright: Icelandic Photo Agency.

The then director of Iceland’s Central Bank, Davíd Oddsson, and then Minister of Finance, Árni M. Mathiesen, signed the amended declaration of intent on November 19, 2008, the same day the loan was accepted. They had also signed the former declaration on November 3.

The following sentence was added into the ninth article of the amended declaration: “Iceland promises to honor it obligations on the basis of its deposit insurance scheme with respect to all insured depositors.”

According to Frettabladid’s sources, it was necessary to further emphasize this intent regarding Icesave in order to secure the IMF loan. This is consistent with the claims made by former Prime Minister Geir H. Haarde and current Minister of Finance Steingrímur J. Sigfússon.

On the contrary, Franek Rozwadowski, the IMF representative, said yesterday on RUV radio news that it would have no impact on the first review of the IMF plan if the Althingi parliament failed to pass the bill on the government’s responsibility for the Icesave loan.

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