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**new-nickname-zanovo** · 02-27-2010, 04:01 PM

As far as I have understood the situation is as follows:

Iceland is part of some sort of European Economic Zone (No, not the EU). Subsequently Icelandic banks can do business in other memberstates as long as they have a licence from the Icelandic Central Bank. Icesave had such a licence. The central bank guarantees deposits at such licenced banks up to 20K euro (per person (or account?) in case of a collapse of the bank.

When mayham started in the US leading to the credit crisis, The Dutch Finance Department increased the guarantee to 100K euro because they feared people would withdraw their savings from any Bank in the Netherlands. When Icesave fell, the Netherlands (apparently together with the UK) negotiated with the Icelandic parliament a deal that their Central Bank would cover the extra 80K.

Soon the Icelandic government collapsed, leading to new elections and the new parliament now wants to cancel the deal.

02-27-2010, 04:01 PM	#8
new-nickname-zanovo Join Date Oct 2005 Posts 487 Senior Member	As far as I have understood the situation is as follows: Iceland is part of some sort of European Economic Zone (No, not the EU). Subsequently Icelandic banks can do business in other memberstates as long as they have a licence from the Icelandic Central Bank. Icesave had such a licence. The central bank guarantees deposits at such licenced banks up to 20K euro (per person (or account?) in case of a collapse of the bank. When mayham started in the US leading to the credit crisis, The Dutch Finance Department increased the guarantee to 100K euro because they feared people would withdraw their savings from any Bank in the Netherlands. When Icesave fell, the Netherlands (apparently together with the UK) negotiated with the Icelandic parliament a deal that their Central Bank would cover the extra 80K. Soon the Icelandic government collapsed, leading to new elections and the new parliament now wants to cancel the deal.
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