UK and Netherlands to sue Iceland over lost deposits

**Maggy** · 10-04-2011, 20:54

http://www.bbc.co.uk/news/business-13029210

Quote:

The UK and Dutch governments are preparing court action against Iceland to recover 4bn euros (Â£3.5bn) lost when the country's bank system collapsed.
It follows a referendum in Iceland which rejected a repayment plan.
The UK said it was "disappointed" by the "no" vote, while the Dutch finance minister said the time for negotiations was "over".
Iceland's Finance Minister Steingrimur Sigfusson said that resolving the row in court would take at least a year.

I'm still trying to work out why they had a referendum.

10-04-2011, 20:59

Quote:

Originally Posted by Maggy J

http://www.bbc.co.uk/news/business-13029210

I'm still trying to work out why they had a referendum.

They have had 2 referendums and both have not reached a payment plan .Basically i think we have bumped

Quote:

This is the second time the Icelandic government has held a referendum on repaying the money.

sky link

**Maggy** · 10-04-2011, 21:05

Well if one wasn't useful why another?

Osem · 10-04-2011, 21:09

Their govt. didn't get the answer it wanted? Now where have we come across that before?......

10-04-2011, 21:19

Quote:

Originally Posted by Maggy J

Well if one wasn't useful why another?

I honestly don't know Maggie ,i see no reason for a government to hold a referendum on such a simple matter as repaying a loan .It may be that the government was trying to appease the electorate and it backfired

Osem · 10-04-2011, 21:25

Quote:

Originally Posted by martyh

I honestly don't know Maggie ,i see no reason for a government to hold a referendum on such a simple matter as repaying a loan .It may be that the government was trying to appease the electorate and it backfired

The amount in question wasn't a loan was it? In any event it represents an awful lot of money for a country of only 300,000 people - IIRC about half their entire GDP. The strong desire of some powerful politicians there to join the EU might also account for the Icelandic people being given a 'second opportunity' to say yes.....

**Damien** · 10-04-2011, 21:30

Quote:

Originally Posted by Osem

The amount in question wasn't a loan was it? In any event it represents an awful lot of money for a country of only 300,000 people - IIRC about half their entire GDP.

My understanding is the international consequences of failing to pay back the money will be serious. The government desperately wanted a yes because it was the most rational decision, heaven knows when they had a referendum. Paying back so much money isn't going to be popular.

Osem · 10-04-2011, 21:32

Quote:

Originally Posted by Damien

My understanding is the international consequences of failing to pay back the money will be serious. The government desperately wanted a yes because it was the most rational decision, heaven knows when they had a referendum. Paying back so much money isn't going to be popular.

Well it'll put a dampener on their EU membership plans as the UK and Netherlands will veto it.

Iceland's president forced the referendum.

http://uk.finance.yahoo.com/news/Ice....html?x=0&.v=1

10-04-2011, 21:38

Quote:

Originally Posted by Osem

The amount in question wasn't a loan was it? In any event it represents an awful lot of money for a country of only 300,000 people - IIRC about half their entire GDP. The strong desire of some powerful politicians there to join the EU might also account for the Icelandic people being given a 'second opportunity' to say yes.....

actually i don't think it was a loan as such , according to Maggies link it is for monies lost when the banks collapsed ,i know a fair number of UK local authorities lost money they had invested in the Icelandic banks that went under

---------- Post added at 22:38 ---------- Previous post was at 22:36 ----------

Quote:

Originally Posted by Osem

Well it'll put a dampener on their EU membership plans as the UK and Netherlands will veto it.

Iceland's president forced the referendum.

http://uk.finance.yahoo.com/news/Ice....html?x=0&.v=1

will we veto it ?or could we use their membership as a way of getting our money back

Ignitionnet · 10-04-2011, 22:23

Why would we want to veto it? If they're stupid enough to want to join the EU encourage them to do so, at least it'd bring a measure of revenge.

**Maggy** · 10-04-2011, 23:10

Quote:

Originally Posted by Ignitionnet

Why would we want to veto it? If they're stupid enough to want to join the EU encourage them to do so, at least it'd bring a measure of revenge.

Yes but if Iceland do join the EU is there a chance we will have to bail them out when their economy collapses?

TheDaddy · 10-04-2011, 23:20

Quote:

Originally Posted by Maggy J

Yes but if Iceland do join the EU is there a chance we will have to bail them out when their economy collapses?

Yeah but then we get to privatise their banks... Oh...

Osem · 11-04-2011, 12:58

Quote:

Originally Posted by Ignitionnet

Why would we want to veto it? If they're stupid enough to want to join the EU encourage them to do so, at least it'd bring a measure of revenge.

Only as leverage through which to get our money back.

Anyway I'd be happy for the UK to swap our EU membership to Iceland in return for our money back.

Sirius · 11-04-2011, 16:21

Quote:

Originally Posted by Osem

Only as leverage through which to get our money back.

Anyway I'd be happy for the UK to swap our EU membership to Iceland in return for our money back.