FX.co ★ Iceland Will Repay Debts to Great Britain and Holland

Iceland will repay debts to Great Britain and Holland. It was announced by the Iceland’s President Olafur Ragnar Grimsson in the interview for the British radio, - BBC News reported.
In 2008 during a week 3 major Icelandic banks making to 80% of the country’s financial sector announced about the inability to fulfill their obligations. One of three banks – Landsbanki was running its activity within Holland and Great Britain.
In follow-up of its bankruptcy the governments of these two countries had to compensate its citizens (about 400 000 people) the losses in the amount of 4 billion Euro. Great Britain and Holland required from Iceland to return this amount threatening to apply to the European court.
The debt challenge in Iceland was brought up for discussion twice at the referendum. On April 10 the voting declined the agreement on debt repayment to two European countries.
The Government of Iceland announced that the people’s decision must be considered not as a refuse from debt repayment, but as an unwillingness to provide a public guarantee of private business debts.
Olafur Ragnar Grimsson emphasized that debts can be and should be covered at the cost of Landsbanki property, recognizing the right of his fellow citizens not to bear responsibility for the private bank debts. Property of the broken bank is estimated at more than 9 billion Euro. First payments are to arrive at the end of December. Nevertheless, the President Grimson announced that if the matter comes to trial the republic will enforce court’s decision, whatever it is.