The day of decision… or maybe not…
The day of decision regarding the Landsbanki bonds agreement isn’t over – still too early to tell how it ends. Allegedly, Bjarni Benediktsson minister of finance and leader of the Independence party had planned to answer LBI, with some changes to previous agreement. His attempt was, again allegedly, stopped last night by prime minister Sigmundur Davíð Gunnlaugsson.
The LBI postponed its creditor meeting yesterday until today. It is now due to start at 4pm. However, it is still unclear if there will be an answer from Icelandic authorities regarding the agreement. Or not. The minister of finance has to inform the Alþingi economy and business committee of the agreement and so far, no meeting has been called in the committee.
No doubt, there are hectic meetings ongoing. Considering the fact that the agreement was made on May 8 this year the government has had ample time to analyse the matter. However, this government has so far normally decided things the very last moment (the “correction” of loans and handling of the appointment of the governor of the CBI spring to mind).
The agreement was meant to be a first step towards lifting the capital controls. If Benediktsson, who has the formal responsibility for finding a solution, is being stopped in his track now the question is if he is in command and if he stands any chance at all to progress as he wants to. As I have often pointed out earlier the solution regarding the capital controls and the three estates – Landsbanki, Glitnir and Kaupthing – is a political one. It is now an even bigger question than earlier if the two party leaders in government will at all come to necessary conclusions on key issues. Or if things will just drag on as hitherto, with state-owned Landsbankinn limping towards default next year, certainly not the sellable asset of which the government had planned to sell 15% next year and again 15% the following year.
Even more intriguing that this alleged wrestle between the two party leaders is happening on a day when the daily Fréttablaðið publishes a poll showing that Gunnlaugsson’s party, the Progressive party, now only has 8.7% of votes, compared to 24.4% in the elections in spring last year. With this result the party would lose 13 MPs. Benediktsson’s party, the Independence party, has jumped up from 26.7% to 30%. The social democrats have 23.1% according to the poll, got 12.8% of votes in the election.
– – –
Late afternoon addition:
It now seems clear that no answer on the Landsbanki bonds agreement is forthcoming from the government today – but is apparently to be expected on Monday.
– – –
Monday Oct. 27:
Nothing more has been heard of the Landsbanki bonds agreement today and it has, as far as I’m aware, not been dealt with today. Prime minister Gunnlaugsson is abroad and nothing seems to be moving. Last Friday, the day the earlier deadline expired, LBI extended the deadline by another week. Not all creditors were content with this leniency. However, it remains to be seen if this extension will produce the awaited answer.
If Benediktsson really planned to answer favourably his plan has so far been thwarted.
In addition: on Oct. 14 S&P’s published a new rating for the three banks with the general conclusion as follows:
- We have revised our economic risk trend for Iceland to positive from stable, and expect a continued improvement in the banking system’s asset quality.
- We have therefore revised the outlooks for Arion Bank, Islandsbanki, and Landsbankinn to positive from stable, and affirmed the ‘BB+/B’ long- and short-term ratings.
On Landsbankinn it says i.a.: “We also anticipate that the preliminary agreement will extend the repayment profile of legacy bonds of the defunct Landsbanki Islands hf.”
Here is a thought: when the minister of finance announced this summer that the Ministry had hired foreign advisers this was mentioned: “the investment bank JP Morgan will assist the government in connection with Iceland’s sovereign credit rating.” It does not seem too far fetched to imagine that S&P had been given to understand that the bonds agreement would be accepted. If the bonds agreement will collapse (which we should see latest on Friday) I wonder what those who possibly carried the message, if that was indeed the case, that the agreement would come into being and the S&P will feel about this whole saga.
Still too early to spell out the consequences of failure – read all about the financial and economics consequences in the latest CBI Financial Stability report and my earlier logs, see the link below*. Without being overly dramatic the political consequences will open up a whole new chapter in the life of this government and indicate what is to come regarding the perspectives in lifting the capital controls. More on that later when the final answer on the bonds agreement is clear.
*More on the Landsbanki bonds agreement here.
Follow me on Twitter for running updates.
[…] deadlines shows a government not quite knowing what to do or prepared for action as pointed out earlier. As one observer said: “There was an invitation to a theatre performance but when the […]
Landsbankinn kept in misery – for now at Sigrún Davíðsdóttir's Icelog
1 Nov 14 at 12:29 pm
you have an important weblog right here! would you like to make some invite posts on my blog?
nike off white
24 Sep 23 at 2:45 pm
I’m typically to running a blog and i actually recognize your content. The article has actually peaks my interest. I am going to bookmark your web site and maintain checking for brand spanking new information.
kd shoes
24 Oct 23 at 7:50 am
Güvenilir bir medyum için bizi tercih ediniz, medyum haluk hocamız sizler için elinden geleni yapıyor.
almanya da medyum
18 Dec 23 at 7:46 pm
Gerçek bir sonuç veren en iyi medyumu halu hoca ile sizlerde çalışınız. İletişim: +49 157 59456087 Aşık Etme Büyüsü, Bağlama Büyüsü gibi çalışmaları sizlerde yaptırabilirsiniz.
Berlin Medyum Haluk Hoca
18 Jan 24 at 12:24 am
Köln’de Gerçek bir sonuç veren en iyi medyumu halu hoca ile sizlerde çalışınız. İletişim: +49 157 59456087 Aşık Etme Büyüsü, Bağlama Büyüsü gibi çalışmaları sizlerde yaptırabilirsiniz.
Köln Medyum Haluk Hoca
18 Jan 24 at 9:59 am
Berlin’de Gerçek bir sonuç veren en iyi medyumu halu hoca ile sizlerde çalışınız. İletişim: +49 157 59456087 Aşık Etme Büyüsü, Bağlama Büyüsü gibi çalışmaları sizlerde yaptırabilirsiniz.
Berlin Medyum Hoca
20 Jan 24 at 11:29 am
Things i have usually told people today is that when evaluating a good internet electronics retail store, there are a few variables that you have to factor in. First and foremost, you need to make sure to look for a reputable plus reliable retailer that has got great critiques and scores from other consumers and marketplace people. This will make certain you are dealing with a well-known store to provide good support and support to it’s patrons. Many thanks sharing your notions on this website.
News source
20 Jan 24 at 6:47 pm
I intended to send you one little observation to say thanks a lot over again for your remarkable views you’ve contributed on this website. This has been strangely generous of you to deliver without restraint what many people could have marketed for an e-book to generate some cash on their own, notably considering the fact that you could possibly have tried it in case you considered necessary. The concepts likewise served like a good way to be aware that other people online have the identical interest like my very own to see a whole lot more with regards to this condition. I am certain there are millions of more pleasurable opportunities up front for individuals that check out your site.
off white
21 Jan 24 at 12:04 am
Köln’de Gerçek bir sonuç veren en iyi medyumu halu hoca ile sizlerde çalışınız. İletişim: +49 157 59456087 Aşık Etme Büyüsü, Bağlama Büyüsü gibi çalışmaları sizlerde yaptırabilirsiniz.
Bremen Medyum Hoca
21 Jan 24 at 7:06 pm
I just wanted to write down a note to appreciate you for all of the pleasant ideas you are giving out at this website. My time-consuming internet lookup has at the end of the day been paid with reliable facts and techniques to exchange with my good friends. I would state that that we site visitors actually are rather blessed to be in a notable community with very many brilliant people with useful concepts. I feel truly fortunate to have used your web pages and look forward to really more exciting minutes reading here. Thanks a lot once more for a lot of things.
nike sb dunk low
22 Jan 24 at 2:37 am
Köln’de Gerçek bir sonuç veren en iyi medyumu halu hoca ile sizlerde çalışınız. İletişim: +49 157 59456087 Aşık Etme Büyüsü, Bağlama Büyüsü gibi çalışmaları sizlerde yaptırabilirsiniz.
Köln Medyum Hoca
22 Jan 24 at 12:51 pm
Köln’de Gerçek bir sonuç veren en iyi medyumu halu hoca ile sizlerde çalışınız. İletişim: +49 157 59456087 Aşık Etme Büyüsü, Bağlama Büyüsü gibi çalışmaları sizlerde yaptırabilirsiniz.
Medyum Hoca
23 Jan 24 at 12:52 am
I do believe that a property foreclosure can have a significant effect on the debtor’s life. Real estate foreclosures can have a 7 to 10 years negative effect on a client’s credit report. A new borrower who has applied for a mortgage or any loans as an example, knows that your worse credit rating will be, the more difficult it is for any decent financial loan. In addition, it might affect a borrower’s ability to find a really good place to let or hire, if that gets the alternative houses solution. Thanks for your blog post.
kontol kuda
16 Feb 24 at 8:57 pm
Your blog is a place I come to when I need a boost of positivity It’s like a warm hug from a friend Thank you for being that friend
newsyber new supplements
17 Feb 24 at 6:59 pm
Thank you for sharing indeed great looking !
boss88 alternatif
20 Apr 24 at 12:05 pm
Çiftlik Malzemeleri, Hayvan Besleme Ürünleri. Hayvancılık Ekipmanları. Küçükbaş Hayvan Sulukları. Çiftlik Ekipman, Suluklar. Büyükbaş Hayvan Sulukları. Otomatik Hayvan Sulukları. Çiftlik ekipmanları türkiyenin alışveriş sitesi
çiftlik ekipmanları
21 Apr 24 at 8:33 pm
This article is absolutely incredible! The author has done a phenomenal job of conveying the information in an captivating and educational manner. I can’t thank him enough for providing such priceless insights that have definitely enlightened my understanding in this subject area. Kudos to him for crafting such a gem!
stretch marks pregnancy
21 May 24 at 5:19 am
Scam
Shit
18 Jul 24 at 9:23 am
Pornstar
Scam
18 Jul 24 at 10:23 am
Viagra
Fuck
18 Jul 24 at 10:42 pm
Porn
Porn
19 Jul 24 at 11:59 am
Viagra
Drugs
19 Jul 24 at 4:43 pm
Porn
Sex
20 Jul 24 at 12:43 am
Pornstar
Porn
20 Jul 24 at 8:21 am
Porn
Drugs
20 Jul 24 at 1:13 pm
Scam
Sex
21 Jul 24 at 2:14 pm
Sex
Porn
21 Jul 24 at 7:07 pm
Unlike equity and stock markets, the daily fluctuations are very minute in a foreign exchange market.
ntt tcリース 採用 大学
22 Aug 24 at 4:53 pm
These risks can be divided into liability, property, death, disability, health, and long-term care.
七つの大罪 相性診断
22 Aug 24 at 5:15 pm
The opposite bays every include one round-arched window on the 1st story and one sq.-headed window on the 2nd story.
だに 識別
20 Sep 24 at 12:05 pm
Sex
diuwin
22 Sep 24 at 11:00 am
Scam
diuwin
22 Sep 24 at 2:27 pm
On Cloud is another shoe model that you’re probably seeing in all places.
龍 が 如く 0 投資 ファンド
22 Sep 24 at 5:35 pm
Truth is, we are able to build a pasture fence ten instances straighter ‘n we are able to sew a hem!
スプラトゥーン3名前 爆笑
22 Sep 24 at 5:46 pm
Fairly than selling out to a much bigger, sounder institution, its managers gambled that the credit score markets would rebound, arresting the fall in worth of tens of billions of dubious real property assets festering on the firm’s stability sheet.
投資信託 高配当日本
22 Sep 24 at 5:46 pm
Introducing to you the most prestigious online entertainment address today. Visit now to experience now!
8x bet
23 Oct 24 at 1:25 pm
Sex
66 lottery
23 Oct 24 at 7:39 pm
Porn
82 lottery login
24 Oct 24 at 7:24 am