On Sky Now... Iceland to refuse to pay UK 2.3 Billion to savers

Mr_Mumble

Thrugelmir wrote: »

But Iceland is happy enough to seek help from the IMF. Like people, country's need to take responsibility. As Iceland itself benefited from the boom in financial services and tax revenues generated.

The purpose of the IMF is to help stabilise exchange rates, without IMF support the Krona would plummet in value further making it implausible for Iceland to pay back its debts. While the IMF is often accused of being a big stick for large countries to go around whacking small countries with it isn't supposed to act in that way! The IMF don't consider Icesave compensation to be a condition of their loan.

Thrugelmir

Mr_Mumble wrote: »

The purpose of the IMF is to help stabilise exchange rates, without IMF support the Krona would plummet in value further making it implausible for Iceland to pay back its debts. While the IMF is often accused of being a big stick for large countries to go around whacking small countries with it isn't supposed to act in that way! The IMF don't consider Icesave compensation to be a condition of their loan.

More complex than that.

The running spate between Darling and Grimsson could jeopardise Iceland's talks with the International Monetary Fund (IMF) later this month. Iceland’s initial bail out from the IMF in October was reported to have been delayed by a dispute over the repayment plan.

http://www.citywire.co.uk/adviser/-/news/adviser-news/content.aspx?ID=374873

dopester

I thought this Iceland business plan was quite innovative... but I wouldn't like to have all my critical data - processing stuff in one location - with someone able to pull the plug. Also maybe other areas are just as suitable or tech will improve for cooling efficiency. At least it is the type of thinking towards what they'd need to repay debts.

October 2009.
http://news.bbc.co.uk/1/hi/programmes/click_online/8297237.stm

The problem is that while these computers look innocuous, they use a lot of energy.

There is of course the power you need for the servers themselves, but almost as significant is the energy used to keep them cool.

"For every watt that is spent running servers," says Dr Brad Karp, of University College London, "the best enterprises most careful about minimising the energy of cooling and maximising efficiency typically find they are spending 40-60% extra energy on just cooling them."

Cold rush
In Iceland, with its year round cool climate and chilly fresh water, just a fraction of this energy for cooling is needed. It means big savings.

Just outside Reykjavik, work is well advanced on the first site which its owners hope will spark a server cold rush.

Also they have all that geo-thermal power. Iceland / Labour... all the encouragement of extra deadly leverage into the system when a society - partly so that tax revenues are also higher - people could prosper very well with a more stable and simpler approach towards work/living and life.

Degenerate

Generali wrote: »

We all make mistakes.

Indeed. Your particular mistake in this case seemed to be assuming Gordon Brown must be to blame.

baby_boomer

Gordon to blame?

The man just wanted to be able to say at the next election that no UK saver lost money on his watch. Any other consideration, like the cost to taxpayers, was immaterial.

StevieJ

baby_boomer wrote: »

Democracy in action.

Dontcha just luv it ?

Or is the rule of law preferable?

Jan. 6 Capacent Gallup poll showed voter opposition to the bill may be thawing. According to that poll, 51 percent of Icelanders now disagree with Grimsson's veto, compared with 41 percent who back his decision. Fifty-three percent of voters plan to back Icesave in a referendum, the Gallup poll, published by broadcaster RUV, showed. RUV gave no margin of error.


http://www.businessweek.com/globalbi...017_381932.htm

worldtraveller

Iceland has reached a deal aimed at settling the Icesave banking dispute with the UK and Netherlands.

Reykjavik has agreed to pay back the estimated 4bn euros (£3.4bn; $5.3bn) the UK and Dutch governments spent reimbursing citizens who lost money in the collapse of Icesave.

Repayments will begin in 2016 and will be completed by 2046.
The terms of the agreement must now be approved by Iceland's parliament and president.

Representatives of the three countries met in London to agree the final terms of a deal.

Negotiations over the repayments have been going on for the past two years, since Icesave's parent company, Landsbanki, collapsed at the end of 2008.

Iceland will pay an interest on its outstanding debt of 3% to the Dutch and 3.3% to the UK from 2011.

Those terms are better than a previous deal, later voted down by Icelandic voters in a referendum, which included an interest rate of 5.5%.

BBC News

mbga9pgf

Man, 3.3%... we are getting shafted. We could have held out for 4.5% like we stung the pogues with.

IronWolf

what a mess, and people didnt see this coming? What happens when everyones in debt and it hits the fan? You're all screwed. No wonder gold is going through the roof, who can you trust with your money these days? Even a bank account is risky

Mr_Mumble

IronWolf wrote: »

what a mess, and people didnt see this coming?

The astonishing aspect: two years later the totally incompetent government apparatus (FSA, FSCS, BoE, HM Treasury) still allow foreign banks to practice in the same way as Icesave.

If Ireland defaults, as seems likely, will the Irish government continue to back foreign depositors of the, soon to be, government owned banks? Foreign depositors will be behind the IMF, ESM, EFSF, Bilateral loans, secured creditors, domestic deposits and possibly senior creditors in getting their money back. There is a distinct possibility that Bank of Ireland (aka Bristol & West, aka Royal Mail Savings) will be Icesave 2.0.