Most of you probably haven't heard about this before but it's a big deal here and in my opinion it's the biggest financial victory a nation has had since the crisis of 2008 started. Hopefully it will encourage others not to pay up quietly and have the courage to fight for what's right.
Ólafur Ragnar Grímsson the president of Iceland & Gordon Brown former prime minister of the Uk.
(Reuters) - Iceland was right to refuse to repay billions of euros to Britain and the Netherlands for bailing out depositors in a failed Icelandic bank, a European court ruled on Monday.
After the collapse four years ago of Iceland's top lenders during the credit crunch, the British and Dutch governments stepped in to repay savers in the online "Icesave" account run by Landsbanki and wanted Iceland to pay them back directly.
Full Verbatim Quote: Truncated: ©2012 Thomson Reuters. All rights reserved.
Source Link: http://uk.reuters.com/article/2013/0...90R00I20130128
To put things into perspective: A nation of 300.000 people was asked to compensate the savings of 300.000 foreign savers. About 17.000 dollars per each Icelander. The Uk and The Netherlands demanded this from us because of one Icelandic PRIVATE bank which failed.
It's equivalent to the United States compensating for the loss of 300 million foreign savers, total amount of 5 trillion dollars. All just because one private US bank failed.
So for over 4 years this has been the main financial issue here. It has turned out that the estates of the bank will be able to pay it all (except the outrageous interests they were demanding as well) but when we started negotiating we had no idea if it would cover a third of it or all of it. Even if the state would have just had to pay half of amount it still would have been enough to push the country into bankruptcy.
The government wanted to negotiate and pay and made three attempts to do so. Fortunately the president (who is not part of the government but has to sign laws for them to be activated) refused to sign the laws. That lead to the nation voting on it twice in referendums, rejecting them both times.
All the big players in the financial world, including the IMF, the US and the EU, pressured us to negotiate and pay up. It was a very difficult decision for our president to make but in the end he decided that the democracy was more important than the demands of the world's financial elite.
I'm so proud of my nation right now and finally we can put this never ending saga behind us.