Friday, July 22, 2016
US Investors prepare to indict the Icelandic state
US Investment managers, Eaton Vance and Autonomy Capital, are preparing to have the Icelandic state prosecuted because of their investments. The two funds purchased Icelandic government bonds in the aftermath of the financial crises in 2008, Viðskiptablaðið reports.
According to Eaton Vance and Autonomy Capital the Icelandic state must be all but bankrupt since it they’re not willing reimburse investors according to marked value. They believe that the Icelandic state has violated them with the latest law bill passed in parliament in respond to the panama paper leak this spring. Their claim is that the government and the Icelandic central bank violated them and other investors with their bill of law. The bill in question gave an ultimatum of offshore fund holders and companies, they were either to accept the value set by the central bank of Iceland or take their place in the back of the line and wait for the currency restrictions to be lifted.
Eaton Vance and Autonomy Capital have asked the district courts in Iceland to appoint specialists to investigate the legitimacy of the bill. They believe it goes against the constitution of Iceland. According to their evaluation the fact that they can not be paid in marked value for their IKR is inconceivable. According to Bloomberg.com Icelandic lawyer Pétur Örn Sverrisson is one of many lawyers working on the case for the two funds.