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Wednesday 15th of October 2008
October 14, 2008

Trading resumes on Iceland’s stock exchange


by Kay Murchie
”Trading

The Icelandic stock exchange has reopened today for the first time since trading was suspended last Thursday.

Last Thursday, it was announced that trading had been suspended on the OMX Nordic Exchange in a bid to prevent further crises. The country faced a near-collapse of its banking system after the country’s three largest banks were nationalised.

As trading resumed today, the stock market plunged 75%, however, this is apparently due to the fact that not all the listed companies are trading.

Meanwhile, it was announced yesterday that the Bank of England has agreed to provide a short-term secured loan of up to £100 million to the UK division of Icelandic bank, Landsbanki.

Icesave, the UK branch of Landsbanki, closed last week, leaving 300,000 UK savers unable to withdraw their funds. Mr Darling has already assured savers that their money is 100% guaranteed even if their savings exceed the £50,000 per individual covered by the Financial Services Compensation Scheme.

Iceland’s savings accounts, which offer a higher level of interest than its European counterparts, have attracted many customers from overseas.

Meanwhile, the Chancellor added that Treasury officials are in Reykjavik working with the Icelandic authorities to facilitate claims by UK charities and local authorities on their deposits held at these Icelandic banks.

It has been revealed that 108 British local authorities have £842.5 million invested in Icelandic banks, according to Britain’s Local Government Association.

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