Iceland Debt Talks
End Inconclusively
Talks
on how Iceland will repay more than 3.8bn euros debt owed
to the UK and the Netherlands have broken down without any
agreement on Friday.
The collapse of the Iceland-based Icesave online bank in October
2008 hit savers in both countries.
The UK and Dutch governments are seeking repayments from Iceland
after they compensated savers themselves.
However, the three governments have been unable to agree on
revised payment terms after a week of negotiations.
Iceland's finance minister, Steingrimur Sigfusson said after the
breakdown of talks: ’’We had hoped to be able to reach a
consensual resolution of this issue on improved terms, but this
has not yet been possible.’’
In a statement, the UK and Dutch governments said they were
’’very disappointed that despite all the efforts over the past
year and a half, Iceland is still unable to accept our best
offer on the Icesave loan.’’
It added: ’’We have consistently supported Iceland's economic
recovery and our latest proposal built upon this, offering the
Icelandic government the same interest rate as their current
loan from the Nordic countries and, in addition, an offer to
waive interest for the first two years amounting to 450m euros…This
money is still outstanding to UK and Dutch taxpayers and we
remain committed to reaching a final agreement with Iceland in
due course.’’
Stricken economy
Iceland plans to hold a referendum on the Icesave repayment on
the 6th of March and the government is hopeful it can reach a
different deal ahead of that.
Opinion polls suggest that a majority of Icelandic voters would
reject the repayment plan.
The dispute has delayed International Monetary Fund help for
Iceland, needed to shore up the stricken economy.
The country's parliament voted for a referendum on the Icesave
bill after President Olaf Ragnar Grimsson vetoed the repayment
to the UK and the Netherlands.
Opponents say the repayment plan forces Icelandic taxpayers to
pay for bankers' mistakes.
The dispute has also overshadowed Iceland's application to join
the EU, which was submitted in July.
Iceland's economic crisis persuaded many of its politicians that
it would be better off inside the 27-nation bloc.
BBC/Yinka
