Icelandic PM: Matter finally in proper channels (UK "overreacted")

Seajays

From press conference with Icelandic PM this afternoon (10th):

...
Haarde said that he received a letter from Gordon Brown earlier today clarifying his government’s approach. Haarde then called Brown’s earlier public remarks unfortunate, but claimed that they are mutually working on clarifying the current situation.

Haarde also stated that Icelandic authorities will investigate whether it was legally justifiable for the UK government to overreact in the way it did, especially when Gordon Brown stated that Iceland was bankrupt. “That was not the case and strong words like that would never help,“ Haarde said.

Full article: http://www.icenews.is/index.php/2008/10/10/icelandic-pm-matter-finally-in-proper-channels/

innovate

What a ponce. I heard him saying myself, in a televised Press Conference, that the icelandic compensation scheme would only pay to Icelanders. How dare he to complain about what Gordon Brown said.

NumbersGuy_2

I have seen several articles on that website with pro-government spin, seems to be a bit of a mouthpiece to me. The Icelandic PM is full of hot air (and a disgrace), trying to save his skin given his government's economic mismanagement and lack of regulation helped create the mess his country is in.

ManAtHome

Yes, the old "Har-de-Haarde, you whistle for your cash Tommy" seems to have backfired a bit. So are they now prepared to back their end of the passport system (several other countries besides UK involved as well as offshore operations) - would probably be cheaper than a global fire-sale..?

dag_2

Yeah, I don't think that Iceland can singularly lay the blame for all of their problems at the door of UK and/or Gordon Brown. Why is it that no-one else wants to bail them out apart from Moscow? Does Haarde think that we Brits have been badmouthing Iceland all round Europe? Do they think that we even have that much influence over Europe, and what Europe thinks?

Nevertheless, I do think he's right to feel aggrieved at the scapegoating that Iceland has faced in the press recently. Iceland has only got as many people as Coventry, plus a few fish. There's absolutely no way that they're going to pay everything the world is demanding of them; at least not any time soon. Well, unless they've got some assets stashed away somewhere that they're not telling us about, which I very much doubt. My understanding is that any assets they did have, have rather reduced in value lately, due to things like, you know, the stock market crash, the property market crash, and the crash in the value of their own currency - that sort of thing.

Make no mistake about it; Iceland might not be officially bankrupt, but that doesn't change the fact that the country is thoroughly screwed and the people are somewhat vulnerable right now.

So I'm pleased to see that there's a chance that Iceland might not become an enclave of Russia after all.

Seajays

dag wrote: »

So I'm pleased to see that there's a chance that Iceland might not become an enclave of Russia after all.

No, instead it might become the North Atlantic extension of Japan... :rotfl:

Reuters reports that according to Japan’s finance minister Shoichi Nakagawa Japan is ready to back up a bail-out plan for the struggling economies of the European nations, starting in Iceland. “With nearly USD 1 trillion in foreign exchange reserves, Japan is prepared to help bail out nations running out of funds amid the worsening global financial crisis,” Mr. Shoichi Nakagawa said.


http://www.icenews.is/index.php/2008/10/10/the-japanese-want-imf-to-start-in-iceland/

1echidna

What would be fatal if countries engaged in the financial equivalent of the trade war which was responsible for the great depression being as deep and severe as it was.

NumbersGuy_2

In this article it says on Friday that the Iceland PM "Geir Haarde also confirmed that Icelandic creditors will get priority over British customers as the country’s fallen banks’ money is returned". Did anyone see this on TV or know more about this? I know the UK government has guaranteed retail savers money but I'm interested to hear that this untrustworthy disgrace said this, having been quoted the exact opposite on Thursday.

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3175405/Financial-crisis-Gordon-Brown-accused-of-sabotaging-Iceland-economy.html

edwinac_2

NumbersGuy wrote: »

In this article it says on Friday that the Iceland PM "Geir Haarde also confirmed that Icelandic creditors will get priority over British customers as the country’s fallen banks’ money is returned". Did anyone see this on TV or know more about this? I know the UK government has guaranteed retail savers money but I'm interested to hear that this untrustworthy disgrace said this, having been quoted the exact opposite on Thursday.

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3175405/Financial-crisis-Gordon-Brown-accused-of-sabotaging-Iceland-economy.html

If the roles were reversed, and Lloyds TSB and Barclays had just been put into administration, what would you expect Gordon Brown to say, ?

Wouldn't you expect Brown to safeguard the savings of Brits first, before those of overseas depositors in British banks?

Also, there are concerns that Brown abused anti-terrorism laws to seize Icelandic assets. Critics are claiming there was no due process, and that Brown acted unlawfully.