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Icelanders Refuse To Pay Back Billions

From a non-judgmental Reuters:

Iceland’s parliament, debates a bill to hold a referendum over repayment of $5.7 billion demanded by Britain and the Netherlands for depositors’ money lost in failed Icelandic banks in Reykjavik Friday Jan. 8, 2010.

Iceland poll shows most plan to vote against Icesave deal

January 9, 2010

REYKJAVIK (Reuters) – Six out of 10 Icelandic voters plan to reject a bill on repayment of more than $5 billion owed to Britain and the Netherlands in a referendum on the so-called Icesave deal, according to a poll published by an Icelandic daily on Saturday.

Iceland’s parliament authorized on Friday the government to hold a referendum no later than March 6 on terms under which Reykjavik will repay the money lost in high-interest Icesave bank accounts during a financial meltdown in 2008.

Britain and the Netherlands compensated savers in full and want their money back.

Reaching agreement with the two European Union countries is vital for the flow of aid to Iceland, still in the grip of a devastating recession. A prolonged impasse could also have implications for Iceland’s bid to join the EU.

Icelandic President Olafur Grimsson unexpectedly refused to sign an amended law this week approving repayment, citing a wave of popular anger over the bill. Under the constitution, his refusal forced Iceland to hold a referendum on the bill.

A poll published by Frettabladid daily showed 62 percent of respondents intended to vote against the Icesave bill in the referendum, while 38 percent wanted the law to go ahead as approved by parliament…

The president’s refusal to sign the repayment bill wreaked political turmoil and forced Icelandic officials to appeal for the continued support of their Nordic creditors — part of a multilateral aid program led by the International Monetary Fund.

Finland, Norway and Denmark all restated on Friday that a condition for their loans is that Iceland meets its international obligations.

Notice that the only leverage the British and Dutch have to get their money back is to threaten to refuse to send Iceland any more aid.

Mind you, this is the same Iceland that our moral betters, such as Robert Kennedy Jr., were touting as a ‘green’ economic powerhouse.

We were supposed to model our economy on Iceland’s.

Funny how we don’t hear anything about that now.

This article was posted by Steve Gilbert on Saturday, January 9th, 2010. Comments are currently closed.

8 Responses to “Icelanders Refuse To Pay Back Billions”

  1. proreason

    What a moral dilemna.

    If Iceland were an African country, it would be instantly forgiven for this debt, and loaned more money.

    But almost everyone in Iceland is white. And beyond that, as nearly pure-blooked descendents of Vikings, they are the archetypical white opressors. As such, they merit no generosity whatsover, of course.

    Yet here they refuse to pay the money back, just like any African country would do.

    It’s like a cruel hoax, isn’t it.

    Maybe the Brits will nuke em for stealing while not being black or Muslim.

    • misanthropicus

      You nailed it – besides this, those creeps’ island is not besieged by white-men-caused global heating, and increasing tides like Tono or other phenomenal civilizations –
      And they like snow, those bastards -

  2. U NO HOO

    “repayment of more than $5 billion”

    Obama can cover that with TARP funds, no problem.

  3. “Neither a borrow nor lender be.”

    Or they could just go all Viking on ‘em.
    .

  4. RickCaird@CairdConsulting.com

    I am not surprised the Icelanders are not going to pay. They are essentially declaring bankruptcy. A quick calculation says that Iceland has a population of 320,000. Hence, agreeing to pay the money back would be about $15,625 for every man, woman, and child. It is unlikely they would ever get out from under that debt. In this whole credit crisis we need to bite the bullet and get bad debt off the books either by repayment or bankruptcy. Instead, we are trying to finesse the day of reckoning, but will only succeed in making it much worse.

    Rick

  5. Confucius

    What if we did the same? What would happen if we didn’t pay back China and Saudia Arabia?

    • Perdido

      You won’t have to wait long to see. We’re two ticks from insolvency now. Tick one, Commercial Paper, Tick two, Credit Card Debt.

      The Credit Markets and the currency are wholly debased.

  6. California, take note! There is a way out of the mess you have gotten yourself in.


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