Majority of Iceland’s Parliament against Icesave Deal Skip to content

Majority of Iceland’s Parliament against Icesave Deal

By Iceland Review

The government’s bill on Iceland’s obligations towards Landsbanki’s Icesave depositors and its agreement with British and Dutch authorities on honoring these obligations is allegedly not supported by the majority of MPs in Iceland’s Althingi parliament.

The headquarters of Landsbanki in Reykjavík. Photo by Páll Stefánsson.

According to Fréttabladid’s sources, a disclaimer that the agreement can be revised is currently being worked on so that the bill can be passed.

The Icesave bill is currently being debated in the foreign affairs committee and the goal is for the committee to reach a conclusion on it by the end of this week.

Allegedly, the provisions on disclaimers are considered unclear. A provision enabling Iceland to review the agreement at any time has been discussed as well as a roof on repayment in consistency with payment ability.

It is uncertain that British and Dutch authorities will accept such conditions but the Icelandic parliament is unlikely to pass the bill without them.

Members of the Social Democrat parliamentary group all support the Icesave agreement, while some members of the other coalition party, the Left-Greens, have expressed doubt regarding it. The foreign affairs committee is therefore trying to find a compromise.

Some have mentioned that resolving the Icesave debate should be postponed until next fall, while others point out that if it isn’t resolved now the reorganization of the banks cannot be completed and Iceland won’t receive foreign loans.

Click here to read more about the Icesave debate.

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