Iceland to Pay Back Icesave Cash

A sore issue with the UK and Netherlands governments seems to have been resolved as the Icelandic Parliament has voted in favor of repaying almost $5 billion when Iceland’s banks collapsed last year.

This became a real political and diplomatic nightmare as paying the debt off would almost leave Iceland in the brink of bankcrupcy, on the other hand not paying would turn the rest of the world against the nordic country and aid could even be denied.

In a statement, the UK Treasury said, “As you would expect, the UK will look carefully at any conditions placed upon the loan to ensure that they are reasonable”.

Iceland hopes that the agreement to make payments to the UK and the Netherlands will help it to get more financial aid.

It does not cover the money councils invested in Icelandic banks. They are engaged in a separate process to recover their money, led by the Local Government Association.

As part of that process Nottingham City Council, which lost £42m, received a first payment on Friday of £2.5m.

BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza