Possible Solution in Icesave Dispute Presented in Iceland Skip to content

Possible Solution in Icesave Dispute Presented in Iceland

Delegations on behalf of British and Dutch authorities are currently in Iceland and discussed the dispute surrounding Landsbanki’s Icesave deposits with the Icelandic negotiation committee until late last night. A possible solution will be presented to the Icelandic government today.

The headquarters of Landsbanki in Reykjavík. Copyright: Icelandic Photo Agency.

According to Fréttabladid’s sources, a decision on whether that solution is viable will be made today. If Icelandic authorities deem it implausible, talks will continue. The Icelandic ministers are optimistic about an acceptable outcome.

The Icesave dispute has been ongoing since the collapse of Iceland’s banking system in October last year. According to schedule, a solution was to be reached last month, but Iceland’s Minister of Finance Steingrímur J. Sigfússon said talks had been delayed because of the situation in the UK.

Sigfússon is both referring to the problems facing the British Labour Party and the worsening economic situation in the UK, which, according to Fréttabladid, hasn’t exactly furthered the Icesave negotiations.

However, the minister stated that he is optimistic that an acceptable conclusion will be reached and that it will be more favorable for Iceland than assumed at first.

Other ministers who Fréttabladid contacted agreed with Sigfússon, saying that the worst possible results would always be a better outcome for Iceland than originally considered.

In Britain, the Icesave dispute has involved what the actual value of Landsbanki’s UK assets is and what kind of an interest rate arrangement the agreement with Iceland should have. The arrangement of payments has also been debated.

The solution upon which the Icelandic, British and Dutch negotiation committees agreed will also be presented to the parliamentary groups of the ruling parties, the Social Democrats and the Left-Greens, and to the parliament’s foreign affairs committee today.

Click here to read more about the Icesave dispute.

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