In an interview with De Telegraef, the biggest newspaper in Holland, Minister of Finance, Steingrímur J. Sigfússon, said that the Dutch people have nothing to fear, Iceland will pay up the Icesave-bill.
Posts Tagged ‘Minister Of Finance’
Minister of Finance Says Dutch Have Nothing to Fear
Sunday, September 19th, 2010“Thank God and the krona Iceland isn’t in Greece’s position”
Monday, May 3rd, 2010
“Oh my God, I wouldn’t want to be in the position they are in,” said Icelandic Minister of Finance Steingrimur J. Sigfusson to Bloomberg. In the interview he said he believes Iceland avoided Greece’s fate partly because it has its own currency.
“The Greek position is very different to that which Iceland was or is in,” Sigfusson said. “Greece has the euro and we could debate whether that’s good for them at the moment.”
“The sovereign debt crisis will mark the political debate of the years to come,” Sigfusson said. “What lies ahead for the world is to sober up.”
Sigfusson told Bloomberg that the likelihood of an Icelandic default has all but disappeared now that the IMF has paid out on the second tranche of its loan package to the country. “I am optimistic that we will not need all the 4.6 billion dollars that the IMF programme allows for,” Sigfusson said.
The minister said he would like to see financial practices like derivatives and credit default swaps prohibited. Such practices do nothing for the economy as a whole, he said.
Iceland nationalises two small banks
Friday, April 23rd, 2010
The Icelandic state has taken over the Keflavik and Byr savings banks after their contract talks with foreign creditors broke down.
Start-up investors will loose all their money and the departing chair of the Byr board says foreign financial companies have just had enough of Icelanders, according to RUV.
The two savings banks have been negotiating financial reorganisations with creditors in order to ensure their survival and the Icelandic government had promised to invest in the banks if creditor agreements could be made. The negotiations ended, however, after several creditors rejected the banks’ offer. As a result, the two banks’ boards requested that the financial regulators in Reykjavik take them over. According to RUV sources, some of the principle obstacles were big German banks, who were also among the savings banks’ biggest investors.
Former Byr chairman Gudmundur Geir Gunnarsson said that the company had gone into the negotiations with a positive attitude, but said it quickly became clear his German counterparts did not care about the Icelandic bank, despite the potential for multi-billion krona losses.
Iceland’s FME financial regulator has created a new state-run company and transferred all customer deposits over to it. Customers’ money is therefore safe and branches of Keflavik Savings Bank and Byr Savings Bank will stay open as normal.
Minister of Finance Steingrimur J. Sigfusson told RUV he is not surprised by the development and said that public exposure to the two banks would be limited to just EUR 5 million to each bank.
Criminal proceedings to start against Icelandic tycoons?
Wednesday, April 21st, 2010
The assets of businessmen Jon Asgeir Johannesson and Hannes Smarason in Iceland will be frozen in connection with tax authority investigations into them and the businesses they used to run.
According to Vidskiptabladid sources, the frozen assets amount to many hundreds of millions of kronur (ISK 100 million = USD 780,000).
The paper’s sources claim that the assets of other so-called Outvasion Viking businessmen will be frozen by tax investigators in the near future. Sources say this information fits well with cloaked words from Minister of Finance Steingrimur J. Sigfusson on Friday.
Sigfusson was asked if he intended to do anything to prevent the architects of the economic crash simply taking over their old companies once more. He replied that tax authorities were involved in an extensive investigation concerning many of these same people and that it was not unlikely that tax issues would be the starting point for criminal proceedings and even the freezing of assets.
No Meetings Scheduled for New Icesave Talks
Thursday, April 8th, 2010
Minister of Finance Steingrímur J. Sigfússon said on Tuesday that no decisions have been made on re-launching negotiations on the Icesave loan terms with the governments of the UK and the Netherlands. The situation is the same as before Easter.
IMF’s Second Review for Iceland Expected in April
Friday, March 26th, 2010Minister of Finance Steingrímur J. Sigfússon is hoping that the International Monetary Fund’s second review of the economic stability program for Iceland will be completed in April. The Icesave talks will probably not resume until May.
Icelandic Ministry of Finance releases treasury debt details
Wednesday, March 17th, 2010
Total Treasury debt at the end of 2009 corresponded to 78 percent of GDP.
Key points:
Net Treasury debt (i.e. debt less financial assets) amounted to 39 percent of GDP at the same time.
Substantial assets in financial and energy concerns offset the net debt of the Treasury.
The Minister of Finance recently approved a policy on debt management for the Treasury up to the year 2014.
The Treasury‘s liquid asset position is sound and will meet repayments into next year.
Prospects for Treasury borrowing are good.
In recent days, there has been some discussion of the debt of the Treasury and its debt management. For this reason, the Ministry of Finance wishes to provide the following information regarding the debt position and its development.
Following the collapse of the banks, the total debt of the Treasury increased from 310 billion kronur in 2007 to 1,176 billion kronur at the end of 2009. The total debt of the Treasury thus amounted to 78 percent of GDP at the end of 2009.
According to the medium-term programme for fiscal finances presented to the Althingi last autumn, the total Treasury finances are projected to be in balance by 2012 and in surplus in 2013. According to the programme, debt will begin declining as of and including next year.
In viewing the development of the debt position, it is important to view the source of the increase in debt. Most of the increase is due to investments in assets that mirror the debt accumulation. The foreign debt of the Treasury thus amounted to 356 billion kronur at the end of 2009, but this amount is offset by 281 billion kronur in foreign exchange reserves. Net foreign debt thus amounts to 75 billion kronur.
Debt arising from the reconstitution of the banking system amounts to 186 billion kronur. This amount is offset by the corresponding ownership of capital and credits to the banks.
Debt in the domestic market amounts to 625 billion kronur, against which Treasury deposits with the Central Bank amount to 164 billion kronur.
The Treasury has applied active debt management in the finances of the Treasury and follows a debt management policy that was drawn up last year in co-operation with experts from the International Monetary Fund and other foreign and domestic experts. The policy outlines the aims and criteria for debt management for the next several years. The liquid position of the Treasury is strong, and Treasury deposits with the Central Bank amounted to 164 billion kronur at the end of last year. The Treasury can therefore refinance 130 billion in loans that mature this year. The financing needs of the Treasury due to deficits have been fully met in the domestic bond market, indicating the faith that domestic investors have in the Treasury.
The table below shows the assets and debt of the Treasury at the end of 2009. Treasury debt is divided into domestic and foreign debt. Financial assets consist of loans extended and deposits.
Debt 2009 GDP
Domestic debt
- Market securities 439
- Bank refinancing 186
- Other domestic debt 195
Foreign debt
- Foreign debt 356
Total debt 1.176 78%
Assets
Deposits and loans
extended 596 40%
Net debt 580 39%
(Ministry of Finance press release)
The Dutch Get Tough on Icesave
Thursday, March 11th, 2010
The Icesave dispute was discussed at the Dutch parliament yesterday, during which Minister of Finance Jan Kees de Jager indicated that the next step was in the hands of Iceland. Other parliamentarians called for blocking Iceland’s loan from the IMF.
Iceland Responds to Icesave Counteroffer
Tuesday, February 23rd, 2010Minister of Finance Steingrímur J. Sigfússon sent a letter to the British and Dutch governments yesterday on behalf of the Icelandic government and opposition. He thanked them for their counteroffer on the Icesave loan terms, declaring that Iceland is prepared for further negotiations.
First Icesave Meeting in London Not Fruitful
Tuesday, February 16th, 2010“It think it is safe to say that they weren’t overcome with joy,” Minister of Finance Steingrímur J. Sigfússon said of the reactions of the British and Dutch negotiators to Iceland’s ideas on a new solution to the Icesave issue.
Finance Minister Hopes for Icesave Talks Next Week
Friday, February 12th, 2010Icelandic Minister of Finance Steingrímur J. Sigfússon said he hopes that Icesave talks with the British and Dutch governments can resume next week, emphasizing that a final decision on renegotiations has yet to be made, contrary to yesterday’s reports.
The Dutch Launch Investigation Into Icelandic Lies
Friday, February 12th, 2010
Dutch Minister of Finance Wouter Bos has ordered an investigation into allegations made by the Central Bank of the Netherlands that Icelandic authorities lied about the situation of the Icelandic banking system in the lead-up to the banking collapse of October 2008.
Buchheit to Lead Iceland’s Icesave Talks
Wednesday, February 10th, 2010Minister of Finance Steingrímur J. Sigfússon announced after yesterday’s meeting with Lee C. Buchheit, an American expert on debts and the co-owner of the law firm Clearly Gottlieb Steen & Hamilton in New York, that he will lead the Icelandic negotiation committee if the Icesave talks with the British and Dutch governments will be resumed.
Icelandic politicians on track for Icesave agreement
Tuesday, February 9th, 2010
Members of the Icelandic government and the opposition met this morning to further discuss the Icesave issue.
The country’s Minister of Finance, Steingrimur J. Sigfusson, told RUV he believes a united position is about to be reached between all parties – a key requirement of the British and Dutch authorities before any renegotiation can take place.
Sigfusson explained that the next step is to telephone British and Dutch government members and also to use the help of the New York-based lawyer Lee Buchheit, who arrived in Iceland today. Other financial experts from Canada are also expected as advisers to the Icelandic government.
Norway Considers Granting Iceland Icesave Loan
Friday, February 5th, 2010
Norwegian Minister of Finance Sigbjoern Johnsen does not oppose the idea that Norway would pay Iceland’s Icesave debt and then grant the Icelandic state a loan at a much lower interest rate than Iceland can receive from the UK and the Netherlands.
Norway denies tobacco producers access to pension funds
Tuesday, February 2nd, 2010
Acting on the recommendation of the Government Pension Fund Global (GPFG), the Norwegian Ministry of Finance has announced that seventeen tobacco producing companies will be excluded from the funding scheme, with share divestment in the companies having already been completed.
“When the Graver Committee proposed the current ethical guidelines, there was debate on whether to exclude tobacco producers from the Fund. With some hesitation, it was decided that tobacco should not be excluded. After the Graver Committee submitted its recommendation, there have been international and national developments through the entry into force of the WHO Framework Convention on Tobacco Control and the tightening of the Norwegian Tobacco Act,” explained Sigbjorn Johnsen, the Minister of Finance in a Norway Post report.
“We have taken these changes on board and believe – amongst others in light of the consultative input in connection with the evaluation of the ethical guidelines – that it is timely to exclude tobacco from the Fund. It is important that the ethical guidelines reflect at all times what can be considered to be commonly held values of the owners of the Fund,” Johnsen added.
The decision to exclude tobacco producers from the Fund came after a GPFG Management report to the Norwegian Storting which was supported by the parliament for implementation in the 2010 budget.
The Ministry of Finance, in determining the new screening criteria for tobacco producers, emphasised that the move was part of a greater delimitation of companies which fail to meet current ethical guidelines.
Accordingly, the new regulations will see all tobacco producers excluded from funding irrespective of the percentage of tobacco related business held by operators, meaning several companies presently not classified as producers under public indexes will also be barred.
Press Release: Minister of Finance the Netherlands and UK Finance Ministers
Friday, January 29th, 2010
The governments of Iceland, the United Kingdom and the Netherlands have held regular consultations on the Icesave issue during the past few weeks. A delegation led by Iceland’s Minister of Finance, Steingrímur J. Sigfússon, and the Chairmen of the opposition Progressive and Independece parties, Sigmundur Davíð Gunnlaugsson and Bjarni Benediktsson, left Iceland yesterday to meet with key counterparts in The Hague. A meeting is scheduled to take place later this afternoon with Dutch Finance Minister Wouter Bos and British Deputy Finance Minister Lord Myners to discuss the current situation and exchange information.
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The Netherlands and UK Finance Ministers today met the Icelandic Finance Minister, who was accompanied by the leaders of the Independence Party and the Progressive Party. They exchanged views on the Icesave issue.
The sides will now consider the situation after this meeting, but at this stage no further discussions are scheduled.
PRIME MINISTER’S OFFICE
Stjórnarráðshúsinu, 150 Reykjavik
tel: 354 545 8400 fax: 354 562 4014
postur@for.stjr.is
www.gowernment.is
British and Dutch Icesave Decision Underway
Friday, January 22nd, 2010Icelandic Minister of Finance Steingrímur J. Sigfússon said after a meeting with opposition leaders in the cabinet yesterday that the reactions of British and Dutch authorities to Iceland’s request on Icesave renegotiations are taking form.
Finance Minister Satisfied with Nordic Icesave Trip
Monday, January 11th, 2010Iceland’s Minister of Finance Steingrímur J. Sigfússon traveled to the Nordic countries last weekend to discuss with his colleagues the impact of the Icesave referendum on the disbursement of loans to Iceland.