News and Articles

Parliament approves state guarantee for Icesave loans

28.8.2009

Today, following 10 weeks of debate, Iceland’s Parliament, the Althing passed legislation authorising a state guarantee for the loans granted by the Governments of the United Kingdom and the Netherlands to the Depositors’ and Investors’ Guarantee Fund of Iceland.

According to the legislation, the state guarantee will be subject to certain criteria and preconditions. These are aimed at ensuring debt sustainability and allowing Iceland to restore its financial system and its economy while at the same time honouring Iceland´s international obligations.

Prime Minister Johanna Sigurdardottir welcomed the Althing´s decision:

“This is one of the largest financial and economic issues ever faced by Iceland and it has greatly preoccupied the Althing and the people since the collapse of the banking system last Autumn. The guarantee of the combined loans from the United Kingdom and the Netherlands constitutes the single largest financial commitment ever undertaken by the Government of Iceland. Therefore, as I am sure that every parliamentarian will appreciate, the Icelandic parliament has a solemn duty to ensure an economically sustainable future for the country. This has been its goal. Its conclusion of the matter aims towards securing the recovery of Iceland´s financial system and economy. This is for the mutual benefit of both lender and borrower.”

The Prime Minister also praised the tireless efforts by Parliamentarians in the Althing to reach as broad a consensus as possible and stressed the importance of political unity in difficult times.

Following the outcome of the parliamentary process, the Government of Iceland will now consult with the Governments of the United Kingdom and the Netherlands.

Prime Minister Sigurdardottir said that her Government was hopeful that the Icesave issue would now be concluded in a mutually satisfactory manner.

 

Further information:
Financial Dynamics, London
Andrew Walton
+44 20 7269 7204
andrew.walton@fd.com

Prime Minister’s Office, Rekjavik
Kristjan Kristjansson, Press Secretary to the PM
tel: 00 354 899 9352
kk@pmo.is

Ministry of Finance, Reykjavik
Elias J. Gudjonsson, Press Secretary
tel. 00 354 694 1480
elias.j.gudjonsson@fjr.stjr.is

Ministry of Foreign Affairs, Reykjavik
Urður Gunnarsdóttir, Press Secretary
tel. 00 354 864 9974
ug@mfa.is



Send article