President of Iceland: Icesave Won’t Have Bad Impact Skip to content

President of Iceland: Icesave Won’t Have Bad Impact

President of Iceland Ólafur Ragnar Grímsson stated at a press conference yesterday that it is unlikely that the decision of the majority of voters to reject the new Icesave legislation in the referendum on Saturday will have a negative impact on the Icelandic economy.

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President of Iceland Ólafur Ragnar Grímsson. Photo by Páll Stefánsson.

According to him, the position of Landsbanki’s bankruptcy estate is very strong. British and Dutch authorities will receive an over ISK 1,000 billion (USD 8.9 billion, EUR 6.1 billion) payment from the estate because of the Icesave accounts and therefore it is unlikely that they will try to hinder Iceland’s membership talks with the European Union, he reasoned, Fréttabladid reports.

“I don’t fear in any way that this outcome will have a negative impact on the flow of capital to Iceland. If we manage to deliver the message in the international arena that the UK and the Netherlands have a safe payment of seven to nine billion dollars from the bankruptcy estate, Iceland’s cause will appear different than what has been maintained both at home and abroad,” Grímsson claimed.

He was critical of the leaders of the employment market in his speech. “I say in full sincerity: stop talking the Icelandic economy down. Start telling the young people in this country and the entire nation about all the developments that are occurring in the Icelandic economy.”

Vilhjálmur Egilsson, managing director of the Confederation of Icelandic Employers (SA), said the president’s criticism is undeserved.

“We have not been making any doomsday predictions but talked about what matters. We have, in fact, talked the economy up and tried to create credible expectations so that investments that are now at an absolute low will increase,” Egilsson stated.

Click here to read more about Icesave and related topics.

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