Sunday, February 20, 2011


I see in the news that the Icelandic president has decided not to sign the new IceSave laws and thereby making it compulsory for the government to hold an "election" or "voting" among Icelandic citizens where the public gets to vote if the laws should become laws or not.
The clause in the Icelandic laws, that the president is using, states that the president should sign all new laws to make them valid. Should he not do so the laws will still become valid until public has voted for or against the law. The government has to hold this voting or election as soon as possible. The public's voting is final.
The current president is the only president in the history of Icelandic independence not to sign a law and now he's doing it for the third time. 
The reason the president decided not to sign the law is that he had list of forty thousand names, over 10% of the nation or closer to 20% of voters, urging him to let the nation decide on this issue.

My opinion is that these laws are unnecessary and the Icelandic government should make a statement to the international community saying that Iceland will honor all its obligations including IceSave. Then the government should wait and find out how much they´ll have to pay before putting it into law. The reason so many people in Iceland are against those laws is that the amount is so high, that if Iceland has to pay the full amount it'll bring Iceland close to bankruptcy. No one knows at the moment how much money Iceland will have to pay so the law states the maximum amount, but Iceland will certainly never have to pay all that. The bankrupt IceSave bank had properties and outstanding loans that will cover large part of the IceSave debt and if the situation is favorable all of the IceSave debt. Still people are angry and they're afraid that they'll have to pay debts others have created (the largest shareholder in the IceSave bank, Bjorgulfur Thors, was on the list of 500 richest people in UK when I last checked) and the amount of the IceSave is so high that lot of people will vote aginst it, thinking that that way they'll not have to bear responsibility of other peoples actions.
Another reason that this IceSave is such a big issue is that the UK and NL governments were hunting for votes and paid the IceSave customers more than they should have by law. Then they tried to get the Icelandic government to pay them back, at much higher interest than they were paying for that money.

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