Iceland wins in Icesave debate!

Hahahha in your face UK and Netherlands!

EDIT: I did not know that link was paywalled. Here is the one posted earler by that other guy:

http://www.bbc.co.uk/news/business-21231535

Now at last our economic recovery can begin in earnest!

Thoughts?

That link is paywalled. I assume it says you have a good economy (comparing to us brits isn't saying much though, we're entering a triple dip recession). Could you provide a summary of the article?

Had trouble with the link. Here's the BBC one for anyone interested: http://www.bbc.co.uk/news/business-21231535

As for the topic, the UK is fucked anyways. This is like kicking a dog while he's stuck in a bear trap.

Hardcore_gamer:
Now at last our economic recovery can begin in earnest!

Who, exactly, is going to invest in a country where they can't even secure their savings?

On topic, I'm mixed. On the one hand, the Icelandic government needs the funds that would have gone to the UK and Netherlands to repair it's own economy. On the other hand, this method may actually hurt their ability to get outside investment even after their recovery. I would have recommended a "delayed compensation" whereby Iceland give's IOUs, with the aim of comping losses with interest after the economy has recovered.

Yea, well, that's what you get for having a savings account in another country. It comes with benefits, but also holds much higher risk than when you keep your money in your own country.

Also, to the OP, going "Hah, we don't have to pay you the money that we owe you any more!" sounds pretty dickish, just saying. =/ Sure iceland needs to rebuild it's economy, but still...

Good luck finding serious investors the coming years.

"wins in Icesave Debate - Loses international credibility"

Good luck finding any serious economic investments in the future Iceland

Dear regards The Netherlands and Uk

P.S go fuck yourself iceland

So, I have heard the phrase 'cut off the finger to save the hand', but it appears Iceland prefers to go with the less popular phrase 'cut off the hand to remove the splinter'.
Basically your economic recovery is going to be crazy hollow, because when the rest of the world recovers Iceland is out of the loop.

This is not good news for Iceland, the UK, the Netherlands, or the world in general.

Haven't Iceland voluntarily been paying off this debt for years already?

It'll probably continue to do so, to preserve relations with the EU (...though Britain ain't exactly popular there right now). This outcome might help them negotiate much better interest rates on it though.

sanquin:

Also, to the OP, going "Hah, we don't have to pay you the money that we owe you any more!" sounds pretty dickish, just saying. =/

We never owed them any money...

Imperator_DK:
Haven't Iceland voluntarily been paying off this debt for years already?

It'll probably continue to do so, to preserve relations with the EU

LOL!

Iceland isn't going into the EU. Our government decides to start EU talks against the will of the majority of the nation and its easily been one of its biggest blunders. EU talks will probably be ceased within a year, probably less.

Hardcore_gamer:

sanquin:

Also, to the OP, going "Hah, we don't have to pay you the money that we owe you any more!" sounds pretty dickish, just saying. =/

We never owed them any money...

From what I gathered from the story icesave went bankrupt or something, and thus left thousands of people from the UK and NL without their savings accounts. I'd say that's owing them money... Sure it wasn't iceland but that bank, but still.

Hardcore_gamer:
...
LOL!

Iceland isn't going into the EU. Our government decides to start EU talks against the will of the majority of the nation and its easily been one of its biggest blunders. EU talks will probably be ceased within a year, probably less.

Whether you wish to join the EU or not, I believe it's both your biggest source of investors and greatest export region. So maintaining good relations with it is probably wise.

sanquin:

From what I gathered from the story icesave went bankrupt or something, and thus left thousands of people from the UK and NL without their savings accounts. I'd say that's owing them money... Sure it wasn't iceland but that bank, but still.

Hmm.

Seems a bit strange to deposit money in a foreign bank and then expect deposit insurance from that bank's government: having a large international bank becomes a deep liability for a small government in that case. If a bank accepts deposits and funds loans internationally but is only insured by the small country in which it resides, the risks to the host government are highly disproportionate to the benefits of having that bank. Unless, of course, the bank pays a tax larger than the relevant risk premium. (I don't know if that was the case for Icesave.)

Imperator_DK:
Haven't Iceland voluntarily been paying off this debt for years already?

Iceland agreed in 2009 to pay their debts, but then broke that agreement illegally later on.

Somehow, apparently, they ruled that you don't need to pay your debts. Strange ruling. One that won't change the damage this does to Iceland already, but does make it a lot worse.

Swindling gits. That's the last time I'm shopping there!

Why should the nation of Iceland pay debts acquired by a company in Iceland? It's not the government's fault the bank went under, is it?

thaluikhain:
Why should the nation of Iceland pay debts acquired by a company in Iceland? It's not the government's fault the bank went under, is it?

Because Iceland knowingly let Icesave break deals about maximum acceptable debts. For instance the Dutch DNB (the national bank) had insisted they only draw € 500 million, and Iceland and the DNB agreed on that. Icesave took more money. The Icelandic government knew Icesave had € 1,6 billion and let it happen, in violation of their agreement with the Dutch national bank.

Basically because the Icelandic government is a major cause if not the cause of the Icesave affair.

Blablahb:

thaluikhain:
Why should the nation of Iceland pay debts acquired by a company in Iceland? It's not the government's fault the bank went under, is it?

Because Iceland knowingly let Icesave break deals about maximum acceptable debts. For instance the Dutch DNB (the national bank) had insisted they only draw € 500 million, and Iceland and the DNB agreed on that. Icesave took more money. The Icelandic government knew Icesave had € 1,6 billion and let it happen, in violation of their agreement with the Dutch national bank.

Basically because the Icelandic government is a major cause if not the cause of the Icesave affair.

And yet the courts ruled in our favor and said we did not have to pay. I would rather trust the courts then some random person on the internet for as to why we should have to pay or not.

Hardcore_gamer:
And yet the courts ruled in our favor and said we did not have to pay. I would rather trust the courts then some random person on the internet for as to why we should have to pay or not.

Open your eyes and realise I'm basing myself on a treaty that Iceland signed.

Not to mention that I haven't got a clue what this court thingie is. An EFTA court? The EFTA is a free trade zone consisting only of Norway, Switersland, Iceland and Liechtenstein if you even want to count that as a country. It's unclear what their jurisdiction is, or what sort of case this was.

Come back when the European Court shares your silly opinion that international treaties mean nothing.

I find that ridiculous and find the fact that it's going to referendum stupid, put a foreign affair that could drastically affect the foreign economic opinion of Iceland to people who's only thought is, "well it's not my damn money".

Another thing is that is a pretty low insurance threshold, even the UK's is 25k(dollars) lower than the US's.

It's very charitable of the Europeans to spare Iceland. I wonder how far something like this can be taken before Iceland faces invasion from her fellow capitalists.

Hardcore_gamer:
Hahahha in your face UK and Netherlands!

EDIT: I did not know that link was paywalled. Here is the one posted earler by that other guy:

http://www.bbc.co.uk/news/business-21231535

Now at last our economic recovery can begin in earnest!

Thoughts?

Can you ever make a post here without throwing about massive generalisations? Here's a hint, most people in the UK don't even have a clue where Iceland is, and of those that do, most are categorically not this dick;

This is not a very big deal: the sums of money in question are actually quite small.

The UK and Netherlands have priority claims on the remaining assets of the now-defunct Landsbanki, and those remaining assets are large enough to cover the money owed to the UK and Netherlands.

All that UK will not be getting is interest on about half of the debts owed, which after a few years will obviously be worth a somewhat less than they were at the point of collapse. Specifically, of a total 4.3 billion owed, the UK will only be losing about 100 million. I expect the situation is very similar for NL.

Of course, whilst chump change to the UK/NL, 100 million is proportionally a lot more money to Iceland. But hardly bankruptcy-inducing either.

Blablahb:

Not to mention that I haven't got a clue what this court thingie is. An EFTA court? The EFTA is a free trade zone consisting only of Norway, Switersland, Iceland and Liechtenstein if you even want to count that as a country. It's unclear what their jurisdiction is, or what sort of case this was.

Come back when the European Court shares your silly opinion that international treaties mean nothing.

Iceland is not a member of the EU, thus outside EU and European Court jurisdiction. EFTA is the body which both Iceland and the EU are signed up to (as member state and treaty partner respectively), thus EFTA seems to me to be the appropriate body to rule on the case.

Of course, the cynical might suggest that this ruling might have somethign to do with the fact that EFTA might naturally be inclined to protect its constituent members over its treaty partners. But who knows.

It will be interesting to see Iceland attempt to join the EU now.

Iceland: Hi EU, can we join you guys?

UK and the Netherlands: Do you remember when you refused to pay a bunch of loans?

Iceland: Sorta.

UK and the Netherlands: Yeah, you're not coming in.

 

Reply to Thread

This thread is locked