2008-11-17 14 h 29 :: monstersandcritics.com :: Iceland expects to reach deposit deal with Germany
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2008-11-17 14 h 29 :: monstersandcritics.com :: Iceland expects to reach deposit deal with Germany
http://www.monstersandcritics.com/news/business/news/article_1443444.php/Iceland_expects_to_reach_deposit_deal_with_Germany_
Iceland expects to reach deposit deal with Germany
Nov 17, 2008, 14:29 GMT
Reykjavik - Iceland was Monday expecting to reach a quick deal with German depositors in Kaupthing Bank, one of the North Atlantic nation's three main banking groups that recently collapsed over the global credit crunch.
Kaupthing had some 30,000 customers in Germany.
Late Sunday, Iceland said it had agreed to reimburse British and Dutch depositors of failed internet bank Icesave, operated by the collapsed Landsbanki Bank.
The compensation agreed for the British and Dutch depositors was 20,000 euros (25,300 dollars).
The Icelandic government statement said it was 'in accordance with EEA law,' a reference to Iceland being a member of the European Economic Area that cooperates closely with the 27-nation European Union on many areas.
Prime Minister Geir Haarde's office, said France, the current president of the European union, had 'initiated' the talks.
The agreement with the British and Dutch governments and other EU members was expected to clear the way for the International Monetary Fund to approve a 2.1-billion-dollar loan later this week.
Other countries, including Iceland's Nordic neighbours have said they were willing to offer loans - provided the IMF board gives approval.
Haarde has said Iceland needs some 6 billion dollars, and recently warned the economy would contract some 10 per cent next year.
Iceland expects to reach deposit deal with Germany
Nov 17, 2008, 14:29 GMT
Reykjavik - Iceland was Monday expecting to reach a quick deal with German depositors in Kaupthing Bank, one of the North Atlantic nation's three main banking groups that recently collapsed over the global credit crunch.
Kaupthing had some 30,000 customers in Germany.
Late Sunday, Iceland said it had agreed to reimburse British and Dutch depositors of failed internet bank Icesave, operated by the collapsed Landsbanki Bank.
The compensation agreed for the British and Dutch depositors was 20,000 euros (25,300 dollars).
The Icelandic government statement said it was 'in accordance with EEA law,' a reference to Iceland being a member of the European Economic Area that cooperates closely with the 27-nation European Union on many areas.
Prime Minister Geir Haarde's office, said France, the current president of the European union, had 'initiated' the talks.
The agreement with the British and Dutch governments and other EU members was expected to clear the way for the International Monetary Fund to approve a 2.1-billion-dollar loan later this week.
Other countries, including Iceland's Nordic neighbours have said they were willing to offer loans - provided the IMF board gives approval.
Haarde has said Iceland needs some 6 billion dollars, and recently warned the economy would contract some 10 per cent next year.
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