Icelandic news translated into English

November 12, 2008

Obviously serious kinks in the procedure of the IMF application

The International Money Fund has suspended the procedure of a loan for over two billion dollars to Iceland for an undecided time, the Financial Times states today. Ólafur Ísleifsson, lecturer at the University of Reyjavík, says that it is obvious that there are some serious kinks in the procedure.

Financial Times repeats from one of the presidents of Fitch Ratings that Iceland is now stuck in mid air. The country obviously needs a new regulatory environment around the finance and currency matters but need the help from the fund to be able to do so. The suspension comes at the same time as it is clear that the Icelandic government has not got the promise for the amount that is needed to meet the plans of the money needs of Iceland.

The paper repeats after a representative from the Icelandic government that the Icelandic nation urgently needs 500 million dollars. There has not been any resolutions in the disputes about the Icesave accounts, from Landsbankinn, between Iceland and the Netherlands and England and that also seems to be slowing down the procedure of loan from the fund.

There is growing rage in Germany as well amongst the clients of Kaupþing Edge, who are worried that they have lost all their money. It is expected that there are around 30 thousand individuals who are hurting from this and they are now demanding actions towards Icelanders.

Ólafur Ísleifsson, lecturer at the University of Reykjavík, says that it is obvious that serious kinks in the matters of the Icelandic application for assistance from the IMF. He says it is very important to brief the people of Iceland better about the situation.

News Article by noname
Original Article in Icelandic

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No reasons given for the suspension

Photo - Reuters
As it is stated in the news article of Financial Times, about the suspension of the processing of a loan from IMF to Iceland, that there is still 500 million dollars needed so that Iceland can finance the rescue pack that is required according to the loan application. Then the English administrators deny it completely that they have stopped the processing of the loan. It is stated in the news article that no public explanation as been given about the suspension of the process of the loan and that Grdon Brown, prime minister of England, declared his support to the loan yesterday to Iceland.

On the other hand Icelanders suspect that the suspension is connected to the dispute between Iceland and England regarding the IceSave accounts. It is quoted from Össur Skarphéðinsson, industrial minister and foreign affairs minister, that he spoke to the representatives for the English administration and they said that there had to be resolutions to other issues at hand before they could support the loan. “I was not having any doubts what they were talking about,” said Össur.

Also in the article is a quote from Wouter Bos, finance minister of the Netherlands, from a television interview but there he said that the Netherlands would protest the loan from IMF to Iceland if there was not any solution in the Icesave case. “Thank goodness that we have as strong allies as England and Germans that have same sort of disputes with Iceland,” he says.

News Article by noname
Original Article in Iceland

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Process of application suspended

Ásmundur Stefánsson, Paul Marthias Thomsen and Petya Brooks are the ones that announced the result of the discussions of Iceland and IMF
It is stated on the website of Financial Times that the processing of the application of Iceland about a loan from the International Money Fund (IMF) has been suspended for undefined time.

It is stated in the news article by David Ibson that it seems that the International Money Fund is chickening out on the help to Icelanders since they have not been able to get but half the loans that were expected to be in the help package to the Icelandic authorities from other countries. It says in the article that 500 million dollars are still needed to finance the rescue pack the application to the IMF relies on.

Icelandic authorities have made a deal about 2,1 billion dollar loan with the representative of the fund on October 24, but the board of the fund have decided to suspend the processing of the application from Iceland. It was planned that the application would be reviewed Thursday, November 6th. But it was delayed til Friday, then to Monday, and finally for undefined time.

Wouter Bos, minister of finance of the Netherlands, said yesterday in a conversation with the Netherlands television station Bos, that the Netherlands will not approve the loan from IMF to Iceland while there are conflicts about responsibilities of Iceland regarding the debet accounts in other countries have not been resolved. He says that the British and German agree with him.

News Article by Golli
Original Article in Icelandic

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November 11, 2008

Stoltenberg spoke about Iceland with Brown

Gordon Brown and Jens Stoltenberg outside Downing street 10 today.
Jens Stoltenberg, prime minister of Norway, spoke about the concerns of Iceland with Gordon Brown, prime minister of England, at their meeting in Downing street London tonight. Stoltenberg said that it could have very serious results for Iceland if the action plan of the IMF is not approved by the board soon.

“I said to him, that i hope it will be a possibility to come to an agreement and find a solution,” the Norwegian newsroom NTB quotes Stoltenberg.

He says there is no secret that there is going to be a rescue plan released because of Iceland but it is assumed that the IMF will loan Iceland 2.1 billion dollars, and other nations 4 billion dollars.

“If this will not go through the situation will be very serious. The plan should have been approved already,” says Stoltenberg.

It has been stated that English and the Netherlands and possibly Germans want that the IMF does not process the Icelandic case until other issues have been resolved about possible responsibility of the Icelandic government towards the bank account balances in the Icelandic banks overseas.

(News Article by noname)
Original Article in Icelandic

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