Icelandic Banks: Iceland To Pay Back UK
Published / Last Updated on 01/09/2009
Icelandic Banks: Iceland To Pay Back UK
Despite fears of the Icelandic people for State Bankruptcy, the Icelandic Government has voted to reimburse both the UK and Netherlands for Icelandic Bank collapses.
In short, three Icelandic Banks collapsed in 2008 and both the UK and Dutch Governments compensated savers for lost savings as the Banks were trading in the UK under EU international trade passport laws.
Iceland has come up with a reimbursement scheme that is linked to Iceland’s economy. 4% of its GDP will be refunded to the UK and 2% to Holland, based upon compensation paid to investors. It is estimated that it will take around 8 years to repay the debt.
The Icelandic people are not happy given that many think that it was the UK Government's very public warning that caused their collapse and therefore blame Messrs Darling and Brown.
We suggest that the Icelandic people should in fact look to their own Government and Regulators who happily let banks trade internationally and take millions out of the UK and back into Iceland, without any real solvency tests. Where did all that money go?
Icelandic Banks were offering ridiculously high interest rates to attract money from greedy UK investors and this should have been investigated by all involved Governments and Regulators.
Useful links:
Contact us - Book Callback - Free Consultation - Newsletter - Money MOT - Discounts
