So, the resolution committee of [collapsed] Glitnir bank has made a public apology to its creditors on account of the foreign currency loans being deemed illegal.
“I just have to apologize to the creditors. It is impossible to feel proud when legislation on lending that has been in effect for nine years is declared illegal,” says Árni Tómasson, head of the committee, in Fréttablaðið today.
Interesting that no public apology has been made to the borrowers.
Meanwhile, both the Glitnir and Kaupthing resolution committees are looking into initiating legal proceedings against the Icelandic state. When the bank’s assets were transferred to the state [i.e. when the bank collapsed], no allowance was made for the billions of ISK in costs associated with illegal FX loans. And meanwhile, if the same ruling is made to apply to housing loans AND at the lower interest rates [as outlined here] … well, then we have big trouble.
Meanwhile, the courts have yet to decide whether or not the recalculation of the loans should be based on the [lower] interest rates that originally applied, or on the ones that the Icelandic authorities have recommended be used.
Only one thing is sure: it is a colossal f*cking mess and one more testimony to the utter incompetence of those who used to be in charge around here.