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 Iceland Supreme Court ruled Friday in favour of emergency laws introduced during the 2008 financial crisis, removing the last uncertainty about whether the country can settle its Icesave debt to Britain and the Netherlands.The Supreme Court ruled that Iceland's government was right to introduce the laws at the height of the crisis to ensure that depositors had priority over other claims on the assets in the island nation's major banks, which all collapsed.
LONDON — William Hague, the British foreign secretary, called the slave trade an indefensible barbarity, “brutal, mercenary and inhumane from its beginning to its end,” in a biography he wrote of a famed abolitionist in 2008.
Fourteen Caribbean countries that once sustained that slave economy now want Hague to put his money where his mouth is.
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.
Overnight, Reuters published an article highlighting something we noted first over three years ago: the unreasonably large size of a local financial sector as represented by its total assets compared to the host nation's GDP.