3 November 2008

Dutch provinces and towns to sue Icelandic bank
An attempt by two Dutch provinces and 29 towns to take legal action against the Icelandic bank Landsbanki is one of the top stories in today’s newspapers.

Dutch Finance Minister Wouter Bos, who has negotiated an agreement with the Icelandic government, is said to be “furious” with the provincial and local authorities.

De Volkskrant writes that the minister fears attempts by the provinces of North Holland and Groningen and 19 towns to recuperate their losses “could pose a danger to the interests of the duped private savers”.

An estimated 120,000 people opened accounts with Icesave in 2008 because of the high interest rate it paid at 5.25 percent.

The Dutch government has negotiated an agreement whereby Iceland will reimburse the first EUR 20,000, with The Hague reimbursing any additional sums up to a maximum of EUR 100,000. The agreement would cover most private losses in the Netherlands, which are estimated at between EUR 1.6 and 1.7 billion.
 
However, local authorities who invested millions of euros or more also want their money back. De Volkskrant reports that “Local authorities have already successfully seized EUR 100 million in Landsbanki assets.”

A spokesperson for the province of North Holland told the newspaper: “There are a lot of vultures waiting to sweep down, outside the country as well; which is why we have to hurry. It would be nice if we could work together with the government.”
 
However, the province’s royal commissioner, Harry Borghouts, has already threatened to sue the national government.

De Volkskrant reports: “This made Bos so angry that on Friday evening he made a live phone call” to a current affairs programme on television.
 
North Holland Provincial Deputy Ton Hooijmaaijers of the conservative VVD party berated the government for attempting “to thwart a civil lawsuit”.

 1 2 3 Next >