Today, the EFTA Surveillance Authority, ESA, has published two major decisions regarding Iceland. Firt of all, it closes seven cases regarding the Icelandic Emergency Act, passed in October 2008, that “granted depositors priority ranking in insolvency proceedings over that of other unsecured creditors. The Act also enabled the Icelandic Financial Supervisor to transfer assets and liabilities from the collapsed banks to new banks.” ESA now concludes that the Emergency Act is not in breech with the EEA agreement.
The second decision regards the question of state aid as the operations of three banks, Glitnir, Kaupthing and Landsbanki, were rescued in October 2008. ESA is already investigating state aid in the insurance company Sjova, one of the many companies wrecked by the Viking raiders, in this case the Milestone Group.
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