Conflicting news
Minister of Finance Steingrimur Sigfusson and Arni Pall Arnason Minister of Trade met with Dutch Treasury Minister Frans Weekers today in Washington, during the IMF Spring Meetings. To Ruv, the Icelandic ministers said that the meeting had gone well and that the Dutch would in no way try to make things difficult for Iceland within the IMF.
Later, it seems that Weekers said just the opposite to Dutch media, i.e. that the Dutch Government would indeed try to hamper the Icelandic IMF programme. This wouldn’t be the first time that the Dutch use their standing in the IMF. And yes, you guessed it: it’s because the Dutch are unhappy because Iceland, after the referendum, can’t pass the bill on an Icesave top-up loan.
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>And yes, you guessed it: it’s because the Dutch are unhappy because Iceland, after the referendum, can’t pass the bill on an Icesave top-up loan.
I think this might be incorrect. The whole issue (as I understand it) is about a guarantee, not a top-up loan.
The latter would be a promise to pay the difference between the actual Landsbanki receipts and the claims, whenever the winding-up is finished. The former is a promise to pay the full amount of the minimum guarantee now (or, if Iceland is not in a position to pay, to agree terms).
Bromley86
18 Apr 11 at 1:09 am
A clarification: the referendum was about an Althingi bill that guaranteed paying back the loan to the UK and the Dutch Government. Assets from Landsbanki will cover much/most of the loan and the Icelandic Government would be topping up the assets of Landsbanki – which is why I somewhat light-heartedly called it a top-up loan.
Sigrún Davíðsdóttir
18 Apr 11 at 7:23 am
Sorry about being pernickety Sigrun. There’s just been so much confusion elsewhere over exactly what the state guarantee was meant to cover.
Bromley86
19 Apr 11 at 11:06 am
You are right, nothing to excuse. I keep pointing out that people don’t get things right re Iceland so I should have been a bit more exact.
Sigrún Davíðsdóttir
20 Apr 11 at 3:28 am