FX.co ★ Former Iceland prime minister on trial for contributing to crisis

On September 5 Geir Haarde was prosecuted in Iceland: he is suspected of contribution to exacerbation of the national financial crisis in 2008. AFP informs that Haarde was the first politician to be prosecuted for the crisis.
The case is considered at Landsdomur court, established in 1905 to deal with cases of governmental officials. This is the first time this court is applied to.
In April, 2010, the commission of experts stated that Haarde (and three politicians more) is guilty of concealing the real conditions of the national economic system. As a result, in autumn 2008 Iceland’s banking sector was afflicted by a crisis which forced the government immediately ask international institutions for help. In January 2009 Haarde’s government retired. Haarde denies the charges calling the prosecution a mere farce and revenge of the local authorities, BBS News says. Two years in prison is the toughest punishment that Haarde may get. According to the agency, nationals do not stick to unanimous opinion: some consider Haarde to be a scape goat, while others think that it would be fair enough to punish officials for role in the financial crisis.

In 2008 Iceland was about to announce default due to soaring inflation, fall of the national currency and enormous foreign debt running considerably over the GDP. The country managed to evade default with financial assistance rendered by foreign countries, including anti-crisis loan provided by the IMF.