Majority in Iceland’s Parliament against second Refunding of Banks Skip to content

Majority in Iceland’s Parliament against second Refunding of Banks

According to a report on Iceland’s parliament may block any government attempt to recapitalize the island’s banks after a court ruling threatened to leave some lenders insolvent.

Bloomberg continues: “Thirty-four lawmakers in the 63-seat Reykjavik-based assembly plan to vote against a government proposal to rescue lenders, according to three opposition party heads and three members of the coalition. The government, which can’t bail out the banks for a second time in as many years without parliamentary backing, may need to support the industry after a June 16 court ruling made them liable for currency losses on as much as $28 billion in loans.”

Three MPs of the majority Left Green party said they would not support such a measure: Gudfridur Lilja Grétarsdóttir, Lilja Mósesdóttir and Ögmundur Jónasson.

In addition the leaders of the opposition parties said they would be against the government pouring more money into the banks. Bjarni Benediktsson, Chairman of the Independence Party said “the government should try to avoid” recapitalizing the banks “at all cost.”

See also:

Moody’s Changes Iceland’s Credit Rating to Negative

Reykjavík Court Rules on Foreign Exchange Loans

Althingi Ombudsman Demands Answers on Loans

Minister: Guidelines on Interest Rate of Loans Ill-Judged

Protest at Central Bank of Iceland, One Arrested

Fifty Billion Added to Consumers’ Burden

No Reason to Panic

Price Indexation: Government Won’t Intervene

Uncertainty Regarding Liquidated Car Loans

Most Significant Economic News in Iceland since the Crash. Currency Pegged Loans Illegal says Supreme Court

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