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.
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.
Submitted by Simon Black of Sovereign Man blog, Without doubt, Iceland was the canary in the coalmine for the sovereign debt crisis that is unfolding across the world right now. It was the first place to go bust, crumbling under the weight of a credit-fueled boom that brought down most of the country’s banking sector and sent the currency into freefall.