Posts Tagged ‘Minister Of Finance’
Friday, January 8th, 2010
Steingrimur J. Sigfusson, the Icelandic Minister of Finance, is today in Norway to meet his counterpart Sigbjorn Johnsen, before continuing to Denmark. His trip is a rushed effort to maintain usually-excellent pan-Nordic relations and attempt to ensure Nordic credit lines to Iceland remain open.
Sigfusson already spoke to Anders Borg of Sweden on the telephone yesterday about how the President’s Icesave decision affects Iceland’s economic recovery plans and what the government’s next steps might be.
“He is of course telling them what the situation is and, of course, getting their feedback and, of course, (trying to) convince them to support the plan … the loans,” Icelandic Finance Ministry spokesman Elias Jon Gudjonsson told Reuters.
Tags: Attempt, Borg, Counterpart, Denmark, Economic Recovery, Elias, Finance Minister, Finance Ministry, Iceland Tour, Icesave, Loans, Minister Of Finance, Ministry Spokesman, Norway, Reuters, Sweden
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Thursday, January 7th, 2010
Minister of Finance Steingrímur J. Sigfússon said in an interview on
RÚV’s news magazine
Kastljós last night that the government’s fate depends on the outcome of the Icesave referendum to a certain extent.
Tags: Break, Extent, Fate, Government Minister, Iceland Government, Interview Magazine, Minister Of Finance, News Magazine, Referendum
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Tuesday, January 5th, 2010
(OFFICIAL TRANSLATION)
The collapse of our banks and the difficulties following in the wake of the world economic crisis have created profound difficulties. Although the Icelandic state has undertaken various liabilities of a magnitude greater than those involved in the Icesave case, the debate on this case has become the focus regarding how we deal with the challenge of the past and also of the future.
The Althingi has now again passed legislation on this matter. This
amends the current law, the Act No. 96/2009, which the Althingi passed
on 28 August and which was based on agreements with the Governments
of the United Kingdom and the Netherlands. The President approved that
Act on 2 September, with a reference to a special statement.
Following the passing by the Althingi of the new Act on 30
December, the President has received a petition, signed by about a quarter
of the electorate, calling for the Act to be subjected to a referendum. This
is a far larger proportion of the electorate than the criterion that has been
referred to in declarations and proposals from the political parties.
Public opinion polls indicate that the overwhelming majority of the
nation is of the same opinion. In addition, declarations made in the
Althingi and appeals that the President has received from individual
Members of Parliament indicate that the majority of the Members are in
favour of holding such a referendum.
Since the new Act was passed by the Althingi, the President has had
extensive discussions with Ministers in the Government of Iceland: the
Prime Minister, the Minister of Finance, the Minister for Foreign Affairs
and the Minister of Economic Affairs.
It is the cornerstone of the constitutional structure of the Republic of
Iceland that the people are the supreme judge of the validity of the law.
Under the Constitution, which was passed on the foundation of the
Republic in 1944, and which over 90% of the nation approved in a
referendum, the power which formerly rested with the Althingi and the
King was transferred to the people. It is then the responsibility of the
President of the Republic to ensure that the nation can exercise this right.
At this crucial juncture it is also important to emphasise that the
recovery of the Icelandic economy is a matter of vital urgency. Clearly,
agreement with other nations and good cooperation with international
organizations and all other parties that have an influence on the country’s
economy and financial standing are preconditions for this recovery. The
solution of the Icesave dispute is a part of such a harmonious process. It is
also a prerequisite for the nation to be able to regain its former strength as
soon as possible and embark, in collaboration with others, on a
programme of recovery which will secure the welfare and prosperity of
all people in Iceland. In the President’s declaration of 2 September 2009,
it was stated that the solution would have to “take account of the fair
rights of the nation, Iceland’s interests in the years ahead and a shared
international responsibility.”
It has steadily become more apparent that the people must be
convinced that they themselves determine the future course. The
involvement of the whole nation in the final decision is therefore the
prerequisite for a successful solution, reconciliation and recovery.
In the light of all the aforesaid, I have decided, according to Article
26 of the Constitution, to refer this new Act to the people. As stated in the
Constitution, the new Act will nevertheless become law and the
referendum will take place “as soon as possible.”
If the Act is approved in the referendum then naturally it will remain
in force. If the referendum goes the other way, then the Act No. 96/2009,
which the Althingi passed on 28 August, on the basis of the agreement
with the Governments of the United Kingdom and the Netherlands, will
continue to be law, recognizing that the people of Iceland acknowledge
their obligations. That Act was passed by the Althingi with the
involvement of four of the parliamentary parties, as stated in the
President’s declaration of 2 September.
Now the people have the power and the responsibility in their hands.
It is my sincere hope that this decision will lead to permanent
reconciliation and prosperity for the people of Iceland, at the same time
laying the foundations for good relations with all other nations.
Bessastaðir, 5 January 2010
Ólafur Ragnar Grímsson
Tags: 28 August, Althingi, Constitutional Structure, Criterion, Declarations, Economic Affairs, Economic Crisis, Electorate, Foreign Affairs, Government Of Iceland, Members Of Parliament, Minister Of Finance, Overwhelming Majority, Political Parties, President Of Iceland, Public Opinion Polls, Referendum, Republic Of Iceland, Supreme Judge, Validity Of The Law
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Thursday, December 31st, 2009
At a meeting at the President’s residence at Bessastadir this morning, Minister of Finance Steingrímur J. Sigfússon put forward a motion that the President sign the Icesave-law with his signature. Usually this signature is ceremonial, but the president has been under pressure to refuse to sign the bill, thereby putting the law to a national vote.
Tags: Minister Of Finance, National Vote, News Flash, President Sign, Signature
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Thursday, December 17th, 2009
An agreement was reached on the settlement of Landsbanki’s assets and debts last night. Minister of Finance Steingrímur J. Sigfússon is content and commented that the restoration of the banking system had not cost nearly as much as originally feared.
Tags: Assets, Banking System, Debts, Iceland, Landsbanki, Minister Of Finance, Refinancing
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Tuesday, December 8th, 2009
New income tax increases proposed by Finnish Prime Minister Matti Vanhanen could result in those who earn over EUR 47,000 a year facing significant rate raises.
Vanhanen, speaking at a Centre Party delegate council meeting, called for the tax increases to come into effect on high income earners for a period of five years once the current economic recovery has stabilised.
Helsingin Sanomat reports that Vanhanen further outlined his proposal by explaining that the increases would be applicable to the top ten percent of Finnish income earners. The proposed rise would not, however, apply to the top tier of very wealthy Finns which number around 260,000.
The National Coalition Party’s Minister of Finance Jyrki Katainen has spoken out against the Prime Minister’s proposal. “If we did that, taxation of earned income and capital gains would diverge even more,” said Katainen.
Vanhanen has stated that his wish is for higher income earners to contribute an additional EUR 200 million into state coffers each year. This would equate to around EUR 770 annually for each person that falls into this bracket.
Vanhanen also aims to collect an additional EUR 2 billion in further indirect taxes. To do so through the VAT system would mean a rise of four percentage points, although the Prime Minister has claimed that increases on energy and environmental protection taxes would contribute. Given that such taxes are applicable to all income earners, Vanhanen has said that it is appropriate that higher income earners are subjected to increased taxation.
Vanhanen has stated that the proposed increases would come into effect after the recession, namely when the next government has taken up office. Finnish parliamentary elections are currently scheduled for 2011.
Tags: Capital Gains, Delegate Council, Economic Recovery, Environmental Protection, Eur 2, Finns, Income Earners, Income Tax, Indirect Taxes, Jyrki Katainen, Matti Vanhanen, Minister Of Finance, National Coalition Party, Parliamentary Elections, Percentage Points, Prime Minister, Recession, State Coffers, Taxation, Vat System
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Wednesday, December 2nd, 2009
At the end of the news article summarizing the details of the proposed transfer of Arion/Kaupthing, we find the following statement of Steingrimur J. Sigfusson, the Minister of Finance:
“The Government is satisfied that Kaupthing Bank’s creditors have acquired the majority of the share capital in Arion Bank, and it is important for the development of the Icelandic economy as a whole that the Government contributes less than originally estimated. The bank is fully capitalized and has solid financial foundations and is an important part of the new Icelandic economy. Arion Bank should be in a position to achieve the financial restructuring of companies and offer viable solutions to indebted individuals and Icelandic households.”
In other words – thanks for taking this smelly piece of garbage off of our hands, so that the government doesn’t have to pay for all that debt to the creditors – the money that Sigurdur Einarsson and friends stole from various foreigners. The bank is not officially insolvent. But the only way for you to get any money from your new investment is if the country doesn’t go down the toilet. Now it’s your decision whether or not to write off the debt to Icelandic businesses and to write down Icelandic mortgages.”
So here we have proof that the Icelandic government did not want to do anything to help Icelandic mortgage-holders because they are the bait – the insect at the end of the fishing line – used to lure the foreign creditors to take over the remnants of the banks.
The foreign creditors’ main purpose is to maximize revenue. So does anyone think they will willingly write-off any more than is absolutely necessary? Or course not. They will try to squeeze every last kronur from the struggling Icelandic homeowners, and the Icelandic government will do nothing to stop them.
There is some logic in the actions of the government, after all it is absolutely necessary for the government to avoid having to pay off the Kaupthing debt by giving the bank assets to the foreign creditors. But the whole process is very cynical, and made worse by the secrecy and lack of explanation for the government’s strategy. Why doesn’t the government simply say what is obvious now, “sorry homeowners, we can’t help you, you belong to the foreign creditors now”?Vilhjalm A. with an interesting comment:
Vilhjalm A with an interesting comment:
At the end of the news article summarizing the details of the proposed transfer of Arion/Kaupthing, we find the following statement of Steingrimur J. Sigfusson, the Minister of Finance:
“The Government is satisfied that Kaupthing Bank’s creditors have acquired the majority of the share capital in Arion Bank, and it is important for the development of the Icelandic economy as a whole that the Government contributes less than originally estimated. The bank is fully capitalized and has solid financial foundations and is an important part of the new Icelandic economy. Arion Bank should be in a position to achieve the financial restructuring of companies and offer viable solutions to indebted individuals and Icelandic households.”
In other words – thanks for taking this smelly piece of garbage off of our hands, so that the government doesn’t have to pay for all that debt to the creditors – the money that Sigurdur Einarsson and friends stole from various foreigners. The bank is not officially insolvent. But the only way for you to get any money from your new investment is if the country doesn’t go down the toilet. Now it’s your decision whether or not to write off the debt to Icelandic businesses and to write down Icelandic mortgages.”
So here we have proof that the Icelandic government did not want to do anything to help Icelandic mortgage-holders because they are the bait – the insect at the end of the fishing line – used to lure the foreign creditors to take over the remnants of the banks.
The foreign creditors’ main purpose is to maximize revenue. So does anyone think they will willingly write-off any more than is absolutely necessary? Or course not. They will try to squeeze every last kronur from the struggling Icelandic homeowners, and the Icelandic government will do nothing to stop them.
There is some logic in the actions of the government, after all it is absolutely necessary for the government to avoid having to pay off the Kaupthing debt by giving the bank assets to the foreign creditors. But the whole process is very cynical, and made worse by the secrecy and lack of explanation for the government’s strategy. Why doesn’t the government simply say what is obvious now, “sorry homeowners, we can’t help you, you belong to the foreign creditors now”?
My few cents:
- Who are the “foreign creditors”? A detailed list please. Like a blogger said yesterday, “we who are supposed to pay everything have the right to know everything”.
- How many of the foreign creditors are “recent investors”, i.e. hedge funds or investment vehicles who have bought their share at discount in the last 11 months?
- How large were those discounts?
- How do they intend to run the bank in the future?
On the write offs issue, I was on the radio show Harmageddon on Radio X yesterday where I said I don’t really have a preference for the banks being government owned or privately owned. Ultimately the government leads the way through legislation and there is work to be done there, for example installing a separation between investment banks and retail banks and removing the price indexation.
I think this “re-privatization” of the banks proves what I have been talking about regarding the government household debt solution, that it was just done to buy some time. I sure hope the creditors aren’t building their business model on expecting everyone to pay their debts as they stand because then they’ll end up with a bunch of property on their hands and bankrupt debtors leaving the country.
I for one am not going to take kindly to a smiling bank employee telling me next year that “this is now a new and different bank”, while expecting me to continue to pay my “same old loan”. So far I have paid four million to the bank in three years onto a 16 million ISK loan. The captial has not decreased, it has increased to 19.5 million ISK. What kind of society is going to stand for that kind of unfair business?
Tags: Creditors, Einarsson, Financial Foundations, Financial Restructuring, Fishing Line, Foreigners, Garbage, Government Doesn, Households, Insect, Kaupthing Bank, Kronur, Logic, Minister Of Finance, Mortgage Holders, News Article, Remnants, Share Capital, Toilet, Viable Solutions
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Thursday, November 26th, 2009
Mar Gudmundsson, Chairman of the Central Bank of Iceland has confirmed that a portion of the promised loan to Iceland from the Scandinavian countries will be requested before the beginning of December and will hopefully be received before Christmas.
Gudmundsson made his announcement in a speech to the Society of Business Administrators and Economists yesterday while talking about the Central Bank’s current projects. The promised Scandinavian loans which Iceland has access to amount to EUR 1.8 billion, or ISK 330 billion.
According to RUV, the Central Bank chairman would not be drawn on how much of the loan amount will be requested. The answer to that question would have to come from the Minister of Finance, he said.
Gudmundsson said he hopes only a small portion of the loan will actually be needed as there are still plenty of funds available in Iceland and the system does not appear to be under financial attack at the moment. Every day that loan funds are not needed saves Iceland money, he said.
Tags: Bank Of Iceland, Business Administrators, Central Bank Of Iceland, Christmas, Current Projects, Economists, Eur 1, Gudmundsson, Isk, Loan Funds, Loans, Minister Of Finance, Money, Scandinavia, Scandinavian Countries, Small Portion
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Sunday, November 8th, 2009
Steingrimur J. Sigfusson, Icelandic Minister of Finance says he has submitted new bills on innovation to the Althingi parliament. If the Minister gets his way, innovation companies will be able to benefit from tax breaks and investors will be able to subtract shares in innovation businesses from their taxable income. The total package could be worth as much as ISK 1.5 billion to innovation companies each year.
The Minister spoke about the proposed assistance at this week’s conference on development and new business. He used part of his speech to talk about developments in other countries and spoke about his own bills which have already had their first parliamentary debate. He said that companies can already get part of their research and development costs refunded if carried out with the knowledge and approval of the Icelandic Centre for Research (RANNIS).
It is under discussion to allow individuals and legal entities to discount money invested in innovation company shares from their taxable income, RUV reports. Sigfusson said that the tax breaks will benefit the state and local councils in the long run as successful innovation companies start to hire more people and pay more tax.
The parliamentary bills look likely to be passed in Althingi’s autumn session and would then start to have an impact immediately in the New Year, although refunds to affected companies would come later.
Tags: Autumn Session, Company Shares, Iceland, Innovation Businesses, Innovation Company, Investors, Legal Entities, Local Councils, Minister Of Finance, Money, New Business, New Year, Parliament, Parliamentary Bills, Parliamentary Debate, People, Research And Development, Successful Innovation, Tax Breaks, Taxable Income
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Friday, October 23rd, 2009
One year after the financial meltdown in Iceland when the three main banks, Kaupthing, Glitnir and Landsbanki collapsed, and many big Icelandic firms such as Baugur Group, FL Group and Moderna went bankrupt, a lot of the smaller Icelandic companies are starting to gain more of a momentum.
Some examples of small innovative Icelandic companies are Trackwell Mobile Resource Management, Gavia (Hafmynd), a new dimension in underwater technology, MindGames, which designs computer games entirely controlled by the users mood, and E-Label specialising in fashion design. Another great example is the Nordic Store, an online shop that sells Icelandic products worldwide.
The Nordic Store is a leading online shop in Iceland that focuses on providing and selling the internet shopper with the biggest selection of Icelandic products. The products on sale range from clothes, jewelry, music, DVDs, maps, travel guides, books, arts and crafts, health and beauty, souvenirs, and even food and beverages.
Some former bankers bought the company when they became unemployed after the bank crash and have subsequently turned it into a million dollar business. According to the owners, the key to its success is to offer quality products in niche markets. Nordic Store has, for example, greatly increased the selection of hand knitted Icelandic wool sweaters that have become very popular online.
To cope with the high demand the firm has now employed more than 50 local knitters, most of whom were unemployed before joining the Nordic Store, and the company expects to employ more throughout the course of the year. Other small Icelandic companies are showing similar progress such as Marorka, a marine energy management solution company, which is one of Iceland’s most successful start-ups, announcing earlier this week that business is booming and 20 new employees will be hired over the next coming months.
In addition to this, The Minister of Finance, Steingrimur J. Sigfusson, presented a ministerial bill on innovative and start-up companies during an investors’ conference recently, which will be submitted to parliament later this month. With incentives like this, small businesses in Iceland are creating jobs and helping the economy to overcome the country’s deepest recession since the Great Depression began in 1929.
To view the incredible selection of Iceland products and to make purchases, visit www.nordicstore.net
(Advertisement)
Tags: Arts And Crafts, Dollar Business, Fashion Design, Financial Meltdown, Food And Beverages, Gavia, Internet Shopper, Jewelry Music, Knitters, Label Specialising, Marine Energy, Mindgames, Minister Of Finance, Mobile Resource Management, Music Dvds, Niche Markets, Solution Company, Start Ups, Underwater Technology, Wool Sweaters
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Wednesday, October 21st, 2009
Minister of Finance Steingrímur J. Sigfússon was not supported by the opposition parties in the Icelandic parliament, Althingi, in his request yesterday to speed up the treatment of the new Icesave agreement with the UK and the Netherlands.
Tags: Althingi, Express, Minister Of Finance, Netherlands, Opposition Parties, Parliament
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Wednesday, October 21st, 2009
The International Monetary Fund announced today the long overdue review of its Iceland recovery package will take place next Wednesday,Visir.is.
The Icelandic broadcaster RUV announced last night that the permanent IMF representative in Reykjavik had preliminarily confirmed that the IMF Board will work on the review next week.
Iceland’s Prime Minister, Johanna Sigurdardottir said after yesterday’s cabinet meeting that she believed the IMF review would be back on the table next week and that the second tranche of the loan to Iceland would finally become available.
The IMF review was due in February but has been delayed by Iceland’s dispute with the Netherlands and the UK over Landsbanki’s failed Icesave savings accounts.
A final bill to settle the Icesave issue was signed on Monday this week and looks set to be passed by Althingi, Iceland’s parliament – although Steingrimur J. Sigfusson’s (Icelandic Minister of Finance) application to fast track the bill through parliament this week was rejected by the opposition.
Tags: Broadcaster, Cabinet Meeting, Finance Application, Iceland, Icesave, Imf Board, International Monetary Fund, Johanna, Landsbanki, Minister Of Finance, Netherlands, Opposition, Parliament, Prime Minister, Reykjavik, Tranche, Visir
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Sunday, October 18th, 2009
According to the Prime Minister of Iceland, Johanna Sigurdardottir the solution indroduced today is the best option in a bad situation. She and Steingrimur J. Sigfusson, Minister of Finance agree that Iceland cannot get any further with this matter and it does not serve Icelandic interests to leave it open any longer.
The Icelandic government has decided that Mr. Sigfusson will sign the proposal on behalf of Iceland and that it will then be put in front of the Icelandic parliament, Althingi, as soon as possible.
The finance ministers of all three countries involved will give out a joint statement tomorrow (Monday).
RUV.is reported
Tags: Bad Situation, Finance Ministers, Johanna, Minister Of Finance, Open Government, Parliament, Prime Minister Of Iceland, Proposal, Ruv
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Thursday, October 15th, 2009
Russian authorities formally rejected Iceland’s request for a foreign currency loan worth up to ISK 65 billion (USD 525 million, EUR 327). Icelandic Minister of Finance Steingrímur J. Sigfússon said Russia’s decision is not disappointing.
Tags: Currency Loan, Foreign Currency, Iceland, Minister Of Finance, Russia, Russian Authorities
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Thursday, October 15th, 2009
Minister of Finance Steingrímur J. Sigfússon presented a ministerial bill on innovative and start-up companies during an investors’ conference, Seed Forum Iceland, on Friday, which will be submitted to parliament in the coming days.
Tags: Iceland, Investors Conference, Minister Of Finance, Parliament, Start Up Companies
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Tuesday, October 13th, 2009
Minister of Finance Steingrímur J. Sigfússon announced yesterday that it is likely that the restoration of the three banks that collapsed one year ago will be completed by November 1. It appears that the restoration won’t cost the Icelandic state as much as expected.
Tags: Banks, Iceland, Minister Of Finance, November 1
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Friday, October 9th, 2009
Icelandic Prime Minister Johanna Sigurdardottir appeared on BBC television yesterday in a rare interview with the foreign broadcast media. Sigurdardottir spoke in Icelandic.
The Prime Minister’s opponents have repeatedly attacked her for not speaking with foreign media enough and for her extreme reluctance to speak English, Eyjan.is reports.
The BBC report was about the Icelandic economy a year after the collapse and explored how Icelanders’ focus is returning to traditional sectors and traditional thriftiness after the uncharacteristic spending spree of recent years.
The report also included an interview with Left Green Steingrimur J. Sigfusson, the country’s Minister of Finance, who described how he believes Iceland’s own currency provides the economy with an important flexibility that would be lost with the euro.
Sigurdardottir disagrees, saying that EU membership and the euro currency would bring a much-needed stability to the Icelandic economy.
The BBC report can be seen on the BBC website for a limited time only, here.
Tags: Bbc, Bbc News, Bbc Prime, Bbc Report, Bbc Television, Bbc Website, Broadcast Media, Collapse, Euro Currency, Flexibility, Johanna, Limited Time, Minister Of Finance, Opponents, Prime Minister, Rare Interview, Reluctance, Spending Spree, Thriftiness, Traditional Sectors
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Friday, October 2nd, 2009
Minister of Finance Steingrímur J. Sigfússon presented the government’s budget bill for 2010 at a press conference yesterday, commenting that it was the most difficult budget an Icelandic finance minister has ever submitted.
Tags: Budget Bill, Budget Minister, Finance Minister, Government Budget, Iceland, Minister Of Finance, Presents
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Wednesday, September 30th, 2009
Ogmundur Jonasson, Iceland’s Minister for Health resigned his position earlier today in a meeting with Prime Minister Johanna Sigurdardottir. He says he cannot put his weight behind the Icesave deal as the government is requiring its ministers to do. He does not, however, wish for his actions to destroy the coalition.
Jonasson said after the meeting that although he has resigned as a minister, he will carry on his duties as a Member of Parliament. He is an MP for the Left Green Party, led by Minister of Finance Steingrimur J. Sigfusson.
Jonasson said that despite his resignation from the Cabinet, he hopes the current government remains in power as long as possible and that it will bring the successful resolution of the ongoing Icesave dispute to the very top of its parliamentary agenda. “The whole time, I have felt that the Icesave issue and the survival of this government are separate issues,” he told Visir.is.
Jonasson continued that he has no idea who will take over his ministerial role yet, before reasserting the importance of the Icesave issue: “I had hoped we would continue our work before the summer holiday when this huge issue was being dealt with separately from all other party political matters.”
Tags: Green Party, Health Minister, Iceland, Johanna, Jonasson, Led, Member Of Parliament, Minister Of Finance, Mp, Parliament, Political Matters, Prime Minister, Resignation, Summer Holiday, Survival, Whole Time
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