New York Times Praises “Iceland’s Way” Skip to content

New York Times Praises “Iceland’s Way”

“Iceland’s way” out of the crisis, not taking full responsibility for the banking collapse but having claimants share the loss, is the right way to go according to yesterday’s editorial in the New York Times, referencing Icesave, among other issues.


Icelandic handball fans. Photo by Geir Ólafsson.

It says that in the economic bubble year before the collapse, the Icelandic banks were incredibly irresponsible, tricked foreign savers into depositing money into their accounts and used that capital to obtain insecure loans, reports.

Icelandic authorities did not fulfill their surveillance role but the decision not to take on the banks’ debts and force the claimants to share the loss instead is constantly looking better now that the Icelandic economy has started to recover, the editorial adds.

The editorial writer stated the European Union and the International Monetary Fund should take a lesson from “Iceland’s way” when they negotiate on bailout tactics for Portugal—the public cannot take on the entire cost of the banks’ misconducts as seems to have been the goal when rescue operations for Greece and Ireland were negotiated.

The editorial writer pointed out that the credit default swaps for the debt of the Icelandic state is now lower than for the debts of Ireland, Greece and Portugal.

Click here to read the entire article and here to read about a changed attitude towards Icesave.

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