Extended LBI deadline – and caged-in creditors?
The LBI has now extended its deadline “for completion of the extension and amendment of the Landsbankinn bonds to December 31, 2014. The new deadline has been determined in further consideration of the Central Bank‘s previous correspondence to LBI by which it had indicated that a final answer regarding LBI´s conditions precedent could be available no later than the end of the year.”
LBI seems to be acknowledging the CBI cannot be pushed to answer earlier although allegedly minister of finance Bjarni Benediktsson was all set to answer earlier but was stopped in his tracks by prime minister Sigmundur Davíð Gunnlaugsson. Or so the rumour goes. The agreement is between Landsbankinn, the new bank owned by the state and the LBI. It seems odd to think that Landsbankinn would have agreed to something its owner would be wholly opposed to but well, who knows (except those in charge)?
In Morgunblaðið today, it is assumed that an exit tax of 35% will only hit creditors of the three bank estates though it is, according to the paper, still unclear if this tax will apply to priority claimants of the LBI, i.e. notably the UK deposit guarantee scheme. There is no mention if this tax will be transparent, i.e. with a preset timeline etc.
An exit tax will contain the problem of ISK but now solve it and the authorities will have little control over how it turns out. With an exit tax the estates will literally be boxed in. Then Iceland is close to a situation described by CBI governor Már Guðmundsson in the following way at a meeting last year: assume the estates are caged in; when new investors come to Iceland they see this cage and ask who is in there; the answer is: foreigners who invested in Iceland last time around.
Follow me on Twitter for running updates.
I enjoy you because of each of your hard work on this site. My daughter take interest in making time for investigations and it’s easy to see why. Many of us notice all concerning the dynamic ways you deliver powerful tips via the web blog and therefore inspire response from some other people about this situation and my princess is undoubtedly starting to learn a great deal. Take pleasure in the remaining portion of the new year. You’re performing a superb job.
kd 12 shoes
23 Apr 23 at 1:43 pm
Thank you so much for giving everyone an exceptionally spectacular possiblity to check tips from this website. It is always so pleasant and packed with fun for me personally and my office colleagues to search your website at a minimum three times in one week to see the fresh issues you have got. Of course, we are at all times happy concerning the magnificent hints served by you. Selected 4 tips in this article are definitely the most effective I have had.
kyrie 8
22 Jan 24 at 6:28 pm