Iceland to take a loan from IMF and investigating the causes of the crisis by Milota Sidorova

For some time we haven't heard of Iceland. Late fall 2008 three major banks collapsed and grabbed the whole country underwater. But the bankruptcy exceeded Island borders and caused huge losses among its foreign, especially British and Dutch customers.The country was forced to accept the loan from IMF. Compared to the rest of the world, Icelandic situation was specific because it didn't get any national support. Nothing like U.S. bailout, multibillion loans covered by the taxes. Here the whole financial system crashed. Later on it decided on 2.2 billion dollar IMF loan provided in three installments. So far, two of them were taken, but the complication came when British and! Dutch vote in IMF commission board refused to provide any other support. The last amount topped 159 million dollar. But compensative steps towards Britain and Nederlands from Icelandic part were overwhelmingly rejected in national referendum. Icelandic people refused to pay back 3.9 billion euros.There have been a lot of tension among politicians themselves last days. There's old saying that everyone is a general after the battle or chasing the wrong tail in the wrong time. It seems like the chase on “sinners” who let the country down has began. Seven politicians including former prime minister Geir Haarde have been accused of “gross negligence” and failed to prevent the collapse back in 2008. According Special Investigation Commission Haarde, former central bank chief David Oddsson, his co-governors Eirikur Gundason and Ingimundur Fridriksson, former finance minister Arni Mathiessen, former banking minister Bjorgvin Sigurdsson and Jonas Jonsson, ex! -director of Iceland's financial services watchdog had had all! the nec essary information to prevent increasing debt ridden policy and inform institution in charge. Commission chairman Pall Hreinsson also said they had more than 2,000 page in-depth report of the crisis examination.Now it is up to current government to decide whether the legal action is taken against individuals.Although, it is hardly to believe it was the only group, knowing the problems and not acting.

related story (sgx16980): http://www.france24.com/en/20100412-iceland-special-investig...

by Milota Sidorova for Cantell TV (http://cantell.tv)

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