Deals about Icesave the only way

Picture by Reuters

The Icelandic government has decided to try to deal with England and Netherlands in the next days on how the Icelandic government can compensate the balances in the Icesave accounts of Landsbankinn to the ones who are hurting from the loss when the banks were bankrupt. It is the evaluation of the head men of the government that the only way to get the loan approved from the IMF and other governments is to finish these deals as soon as possible.

According to the sources of the Morgunblaðið the Icelandic government has been under a lot of pressure from the united nations and the founders of the European Union to make these deals. It has been public that it is the united position of all the 27 ESB countries to be against that Iceland gets the help from IMF until the Icesave debts have been negotiated about.

The ESB countries are not agreeing with the legal reasons of Iceland in he matters and say that this is a political perspective. It is reasoned in the matter that this issue has to be finished in the way that there is no doubt of the value of the executive order from the ESB, that is valid in all the European economic area, about the mutual insurance of the balances. If the unfortunate example is set by giving in on the deals to Iceland everything would be upset in the European bank market in the current situation and the balance owners would stop trusting the banks about practice in another country than its own.

The sources of the Morgunblaðið say that for instance the representatives of all the Nordic nations have made it clear that it will not work to talk about a loan from them until the Icesave disputes have been solved. It was also hinted by the ESB council that if Iceland admits the demands of England and the Netherlands the united nations will try to set the terms in an order that the debt and repayment would not be too heavy for Iceland.

News Article by noname
Original Article in Icelandic

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