UK government willing to be flexible on Icelandic debt
After the result of the Icelandic referendum on the debt repayment scheme for the UK government and the Netherlands government was announced, delivering a resounding "no" vote, the UK authorities have stepped forward with a proposed compromise. After £3.4 billion was loaned to the Icelandic authorities in order to repay savers who lost their savings in the financial meltdown a political argument broke out between the UK government and the Icelandic authorities.
It seems as though people power in Iceland forced the authorities to rethink the proposed debt repayment plan and indeed Alistair Darling has tonight admitted it could take "many, many years" before the country was in a position to repay all of its debt. This is a very different tack to the one taken by the UK government just a few weeks ago when a proposed £3.4 billion debt repayment plan had been agreed by the Icelandic parliament only to be rejected by the Icelandic president who then called a referendum.
It is believed that the Icelandic authorities will put more pressure on Gordon Brown to reduce the size of the payback and indeed we could see the terms and conditions originally agreed by the parliament significantly extended.
Share this..
Related stories
New study finds retirement worries around older workers
Around half of all Britons who are approaching retirement age fear that they have not saved up enough money to live comfortably in old age, new research suggests.According to Hartford Life, 54 per cent of all women aged 45 to 54 years old either feel "somewhat" or "very" concerned about this issue.Among men of the same age, this figure stood at 45 per cent.The credit crunch was cited by the Hartfo...
Read MoreChild Trust Funds
The CTF was a Government-run scheme that allowed children born between the dates of 1 September 2002 and 2 January 2011 to save tax-free for the long term, with added benefit from the Government. However this scheme is no longer available, so those looking to save for their children will have to consider other options. One of these options is the Junior ISA (JISA). JISA’s are accounts that ar...
Read More'Big savings possible for variable rate mortgage holders'
Mortgage holders should use a cut in interest rates tomorrow to reduce their repayment term, a price comparison site has said. Analysts widely expect the Bank of Englands monetary policy committee to cut interest rates by 0.25 per cent tomorrow. Homeowners who stand to benefit most from this are those on variable rate deals and trackers, who will find their repayments significantly reduced....
Read MoreSavers on the back foot as spending power reduced
With UK base rates still at 0.5%, although likely to move higher in the short to medium term, savers in the UK were dealt a further blow today with news that inflation has jumped to 2.9% in December. This effectively reduces the spending power of money in the bank with savers unlikely to attract interest rates in excess of 2.9% at this point in time. So while in simple terms they may be receiving...
Read MorePutting money aside for the kids
Even though life is tough up and down the country it seems that more and more people are now looking to put aside a small amount of money for their children on a regular basis. Many parents believe that the ability, where possible, to give their children a significant financial lift as and when they reach a certain age (normally 16, 18 or 21) is certainly a worthwhile cause. We are now seeing more...
Read More