Iceland Borrows European “Template” – Removes Large Deposit Guarantees

Monday, September 23, 2013
By Paul Martin

by Tyler Durden
ZeroHedge.com
09/23/2013

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-EUR100,000. 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 Rest…HERE

Leave a Reply

Support Revolution Radio