IMF responds to foreign depositors in Icelandic banksLetter by Mark Flanagan, IMF Mission Chief for Iceland
March 10, 2009
To Whom it May Concern
Thank you for taking the time to write to the IMF about your concerns regarding the overseas claims against Icelandic banks. We have been receiving many emails on this topic. As a means to more clearly and visibly explain our current position on these issues, we have decided to post this letter on the IMF's website.
As you may know, the authorities of Iceland have expressed a commitment to recognize the obligations of insured depositors, and to engage in a fair an equitable process that is in line with applicable law to resolve the treatment of such creditors in their ongoing efforts to restructure the failed banks.
Let me emphasize that we at the IMF share your desire to see the situation concerning depositors and deposit insurance loans resolved. As the IMF's program documents have indicated from the start, the fair treatment of depositors and creditors, in line with applicable law, is a subject that is featuring in our review discussions with Iceland's government.
That said, I noted in a recent interview with IMF Survey magazine that Iceland's public debt has already risen dramatically, leaving little scope for further socializing the losses of the banks that went under. For specific details concerning the progress of restructuring for each of the so-called "old banks," I suggest contacting the resolution committees for the relevant banks. Contact details for the resolution committees can be found on the websites for each of these banks.