IMF: Great Britain or Iceland?
17 November 2008The economy of Iceland is on the verge of a collapse, and promised IMF’s 2 billion dollars credit was on fortnight delay - voting, which was planned on November, 5th, will take place only 19th. The suspension of negotiations about rescue of Iceland has been spent under the pressure of the Great Britain. London for a long time could not agree with Iceland about the sizes of indemnification to the British investors, whose money was in nationalized Icelandic bank Landsbanki Island.
Landsbanki Island has appeared on the verge of bankruptcy because of world credit crisis, therefore in October the government of Iceland has made the decision on its nationalization. At the same time the bank enjoyed great popularity among British and Dutches, whose total sum of contributions, including Internet accounts, has reached 8,2 billion dollars. Great Britain has demanded Iceland to compensate losses of investors. This position was supported by Holland and Germany. As consequence, the appointed voting has been transferred for November, 10th, but also in the beginning of last week two have not come to any agreement.
The maximum size of indemnification became a stumbling-block at negotiations between Iceland and London Past Friday the prime minister of Iceland has informed, that the parties «are close to arrangements». And on Saturday in Washington the head of IMF has declared, that the arrangement on credit allocation is reached and voting will take place on Wednesday, on November, 19th. According to British Financial Times, the possible compromise can be the following: Iceland compensates contributions at the rate up to 20 887 euro while the Great Britain will pay the rest of the sum.
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