Browse Topics
Tools
Editor's choice

Learning Dutch is a must!

Sint comes to town

A guide to childcare in the Netherlands

Dutch u-turn on soft drugs tolerance

Yoga--a beginner's guide and where to take classes in the Netherlands

Report: Expatica's "i am not a tourist" Fair 2009

A parent's guide to the Dutch education system

Amsterdam grapples with integration since filmmaker's murder

Wilders debate: shouting or convincing?

Internaxx Stock Market
Index Last Var.(%)
BEL 20 2119.3 0.50
DAX 5252.45 1.50
IBEX 30 10726.8 0.59
CAC 40 3377.59 1.40
FTSE 100 4564.5 0.79
AEX 276.85 0.95
DJIA 9096.72 -0.13
Nasdaq 1975.51 0.39
FTSE MIB 20341.67 1.65
TSX Composite 10570.54 -1.74
ASX 4148.9 -0.60
Hang seng 20135.5 -2.37
Straits Times 0.00
ISEQ 20 442.48 0.27
You are here: Home Finance & Business Banking Iceland's financial meltdown hits Dutch hard

Banking

archive
Print Email Comment Subscribe
Enlarge font Decrease font Text size

17/10/2008Iceland's financial meltdown hits Dutch hard

The global credit crisis and the subsequent failure of Icelandic banks have had serious consequences in the Netherlands

Not only for individual savers, but also for numerous provincial and municipal governments and other (semi) public institutions. Huge amounts of taxpayers' money were deposited in Icelandic banks and the latest figures put the losses at 236.5 million euros. 
 
Iceland note
It is doubtful whether any of that money will be returned. Iceland is almost bankrupt; Reykjavik officially requested funding from the International Monetary Fund on 13 October; the country's banking system has collapsed and the nation's three largest banks have been taken over by the government. On Wednesday, Iceland's central bank (Sedlabanki) cut its key interest rate by 3.5% in an attempt to prevent national bankruptcy. Despite the cut, Sedlabanki announced, "a severe economic contraction was unavoidable".
 
None of this bodes well for Dutch public institutions and regional governments. Private investors will get their money back; Finance Minister Wouter Bos announced earlier that private losses, estimated at between 1.6 and 1.7 billion euros - would be covered by the Icelandic government and other banks. However, Reykjavik has to borrow its contribution of approximately 1.1 billion euros from The Hague. 
 
There's a great deal of anger in the Netherlands about the failure of the Dutch central bank (DNB) to warn of possible problems at Icelandic financial institutions.
 
On Wednesday, a spokesperson for the Dutch finance ministry said the DNB had been on the verge of intervening at Icesave, an Icelandic internet bank offering extremely competitive interest rates, but regulations and legal constraints prevented any action.
Have your Dutch News delivered straight to your inbox - sign up for our e-mail newsletter now!

Print Email Comment Subscribe

General rating: Not rated yet

Rate article:    Add my rating

0 reactions to this article

Reply
Finance essentials
Finance expert Q&A
ask your question
Finance A-Z listings
find the business you need
Discussion Forums

Travel & Transport in the Netherlands

Grote beurt, by blackwater

Legal Problems in the Netherlands

Moving to UK - what happens to my Dutch residence permit, by avocado

Discuss Dutch Culture

What do people of Africa descent think of Zwarte Pete?, by pepe C

Legal Problems in the Netherlands

Consequences of not registering with the gemeente?, by wesley-nl

Netherlands Soapbox

Random Thought of the Day, by wesley-nl

participate in the forums

Inside Expatica
Healthcare in the Netherlands

Healthcare in the Netherlands

Here’s a current guide to health insurance, doctors, dentists and pharmacies.

Dutch immigration and residency regulations

Dutch immigration and residency regulations

Lost in the Dutch immigration system? Look no further than this guide compiled for our Survival Guide 2009.

The Netherlands at a glance

The Netherlands at a glance

Some basic facts and figures about living and working in the Netherlands.

Giving birth in the Netherlands

Giving birth in the Netherlands

The challenges and benefits of the maternity system in the Netherlands and how it differs to other countries.