Iceland stock exchange remains closed

| October 13, 2008 | 0 Comments
”Iceland

Iceland had a disastrous week last week after the nationalisation of the country’s three largest banks. On Thursday, it announced that trading had been suspended on the OMX Nordic Exchange in a bid to prevent further crises.

It was expected that the stock exchange would reopen today but it remains closed due to ‘unusual market conditions‘.

Meanwhile, talks between Britain and Iceland are in full swing with regard to the British deposits frozen in Iceland’s banks.

The talks commenced after Treasury officials headed to Reykjavik late last week to discuss its banking crisis and the affect on UK savers and councils with money in its banks.

Britain’s Local Government Association estimated 108 British local authorities have £842.5 million invested in Icelandic banks.

Arrangements have been agreed ‘in principle’ for a swift payout to retail depositors in Icesave, Landsbanki’s closed internet bank, as they are protected by the UK’s Financial Services Compensation Scheme.

However, the Icelandic government has not extended protection to the £1 billion of taxpayers’ money invested by the local authorities in England. Manchester-based Christie NHS Foundation Trust, said it could lose £7.5 million.

Meanwhile, fears are mounting that some Government workers will not receive their salaries this month because councils have payroll tied up in the banks.

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