Legal Provisions Reason for Icesave Hold-Up Skip to content

Legal Provisions Reason for Icesave Hold-Up

The legal provisions that were added by the Icelandic parliament, Althingi, to the Icesave agreement between the Icelandic, British and Dutch governments are the main reasons for negotiations being stalled, as the British are reluctant to accept them.

According to Fréttabladid, there is also a disagreement on the interest percentage of the loan that will be granted to the Icelandic Deposit and Investor Guarantee Fund from the British and Dutch states, which have already compensated the Landsbanki’s Icesave depositors in their respective countries.

The negotiation committees of the three countries haven’t met since the Icesave legislation—which was passed by parliament in December but vetoed by the president—was rejected by Icelandic voters in a national referendum on March 6. However, they have been in informal contact.

According to Fréttabladid’s sources, people within the Icelandic administration are concerned that economic difficulties in the European Union member states might impact the next offer by the British and Dutch governments. There might be a risk of Iceland being offered the same interest as on loans to countries such as Greece.

Sweden has allegedly been informally trying to mediate the Icesave matter within the EU on behalf of Iceland.

Click here to read other recent news about Icesave.

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