In yet another victory for not bowing to the great-and-good of modern orthodoxy, Iceland has won a court ruling that enables it to repay billions of Euros (in failed bank deposits to the UK and Holland) on its own terms. Icesave collapsed in 2008 and left thousands of depositors, who had chased higher yielding deposits, with losses. The Dutch and British governments demanded prompt payment; Iceland denied, preferring (rationally) to repay what they could from the then-bankrupt entity.
Iceland in an economic recovery thanks to its decision to not bailout banks at taxpayer expense during the great financial collapse. Iceland's decision upset depositors from the UK and Netherlands, who decided to reimburse depositors, then sue Iceland to pay.
The European Union’s decision to force Cypriot savers into a bailout came after banks grew so large that they dwarfed the nation’s economy, resembling Iceland’s finance industry before its collapse.
The banks grew as they amassed funds from wealthy foreigners and now that size is too much for the country to handle on its own
Icelandic President Olafur Ragnar Grimsson called on Sunday for a European Union probe into how the bloc could have allowed Britain and the Netherlands to put so much pressure on Reykjavik in the dispute over the failed Icesave bank."It's worth an investigation for the EU to come to terms with how in the world member states could have agreed to the preposterous British and Dutch demands," Grimsson said in an interview with public broadcaster RUV.
Icelandic, British and Dutch officials were holding new talks in Britain about a repayment deal for losses arising from the collapse of Iceland's Icesave bank, Iceland's finance ministry said Wednesday."The Icelandic negotiation committee on Icesave is meeting representatives of the British and the Dutch governments today in London in order to continue talks on a possible resolution," the ministry said in a statement Wednesday.Officials from the three countries last held talks in the Netherlands in September.
Iceland is within days of reaching a deal with Britain and the Netherlands on repaying the more than $5 billion paid to Landsbanki Icesave accounts holders after the bank collapsed, according to a report late on Saturday.