Alistair Darling puts pressure on Icelandic authorities
Alistair Darling has entered the fray regarding the Icelandic banking collapse compensation scheme which was ratified by the Icelandic parliament but has been held up by howls of protest from Icelandic taxpayers. Indeed the president of Iceland has been forced to attend a number of meetings with activists who are dismayed at the fact the compensation scheme is costing each and every member of the Icelandic population around £11,000.
Many in Iceland believe that taxpayers are being left to foot the bill for the incompetence of politicians, regulators and the ever growing impact of the credit crunch. Indeed, as we covered yesterday, Alistair Darling is not a favourite amongst the Icelandic population after his comments last year were seen by many as the catalyst for a collapse in the currency. However, there is more to this compensation scheme than just the £3.4 billion at stake!
Alistair Darling has indirectly hinted that the Icelandic economy, its position in the worldwide market and indeed Iceland's attempt to join the EU could be impacted by a continuing reluctance to sign off the compensation scheme. It seems almost inevitable that the Icelandic authorities will at some stage be forced to hand over the money to the UK government and the Dutch government, both of which had to pay out significant amounts of compensation to savers impacted by the Icelandic banking collapse.
Share this..
Related stories
What does 2010 have in store for credit card holders?
While credit cards have been knocked off the financial headlines by the likes of mortgages and the banking industry in general, there is no doubt that credit card debt continues to cripple more and more people in the UK. Despite the fact that UK base rates remain steadfast at 0.5% we have seen credit card interest rates continue to rise with credit card companies complaining about default numbers...
Read MoreIs Alistair Darling holding back on the truth?
A number of the financial newspapers have picked up on concerns that Alistair Darling is holding back on details regarding the UK governments planned extensive public sector budget cuts. Despite the fact that in his pre-budget report he indicated there were plans afoot to reduce the spiralling budget deficit, the report was very vague on detail, something which impacted upon the gilts market and s...
Read MoreActivists try to scupper Iceland compensation deal
The president of Iceland will this weekend try to head off a potentially embarrassing situation with a strong activist group looking to scupper this week's agreement to compensate British and Dutch savers caught up in the Icelandic financial collapse. The £3.4 billion deal will see the vast majority of the funds returned to governments in Britain and Holland, who were forced to pay out compensati...
Read MoreGood news for borrowers, as loan rate falls to 4.6%
10/01/2013 Sainsbury’s has cut the borrowing rate on personal loans of between £7,500 and £15,000 to 4.6%, beating both Marks and Spencer (4.7%) and Tesco (4.8%) to the market leading rate. This news comes at a welcome time for borrowers, as rates on personal loans continue to fall despite the Government-led Funding for Lending scheme ending. The scheme was designed to provide cheap cred...
Read MoreIs inflation set to be a problem in 2010?
The revelation that of non-food store prices in the UK increased by 1.4% last month, despite the fact that the UK is currently in recession, has astounded many analysts. This places massive pressure on the rate of inflation which is set to rise above the government's target of 2% in 2010. An increase in inflation, at a time when UK consumers are still struggling to pay their everyday bills, would...
Read More