Iceland Borrows European "Template" - Removes Large Deposit Guarantees
23 September 2013, by Tyler Durden (Zero Hedge)
Following the crisis in October 2008, Iceland's government declared all deposits in domestic financial institutions were 'blanket' guaranteed - an Emergency Act that was reafrmed twice since.
However, according to RUV, the finance minister is proposing to restrict this guarantee to only deposits less-than-€100,000.
While some might see the removal of an 'emergency' measure as a positive, it is of course sadly reminiscent of the European Union "template" to haircut large depositors.
This is coincidental (threatening) timing given the current stagnation of talks between Iceland bank creditors and the government over haircuts and lifting capital controls - which have restricted the outflows of around $8 billion.
The government will remove its blanket guarantee for large depositors...
Bill on deposit will be tabled in the winter.
There will be a deposit equivalent to one hundred thousand euros guaranteed.
Later on it is to withdraw from the 2008 statement of all deposits in domestic financial institutions were fully secured.
The bill is currently in the process of Finance, but the basis is very similar to the bill presented to Parliament in November 2010 but was not passed.
23 September 2013, by Tyler Durden (Zero Hedge)
Following the crisis in October 2008, Iceland's government declared all deposits in domestic financial institutions were 'blanket' guaranteed - an Emergency Act that was reafrmed twice since.
However, according to RUV, the finance minister is proposing to restrict this guarantee to only deposits less-than-€100,000.
While some might see the removal of an 'emergency' measure as a positive, it is of course sadly reminiscent of the European Union "template" to haircut large depositors.
This is coincidental (threatening) timing given the current stagnation of talks between Iceland bank creditors and the government over haircuts and lifting capital controls - which have restricted the outflows of around $8 billion.
The government will remove its blanket guarantee for large depositors...
Bill on deposit will be tabled in the winter.
There will be a deposit equivalent to one hundred thousand euros guaranteed.
Later on it is to withdraw from the 2008 statement of all deposits in domestic financial institutions were fully secured.
The bill is currently in the process of Finance, but the basis is very similar to the bill presented to Parliament in November 2010 but was not passed.
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