Gordon Brown once said: “We are facing a global financial crisis which is probably the first truly global financial crisis of the modern world”. A statement which went on to prove to be accurate with the worldwide financial system collapsing around us it is no surprise that commercial entities were forced to close their doors to the public.
One of the biggest losers in this financial game of high risk investment where the risk outweighed the gain was the Icelandic banks. How many of us would expect to invest in a risky venture and be guaranteed our money back at the end of it? This is essentially what has been stalling negotiations over the last two years.
The collapse of the bank left many accounts out of pocket and the government issued a loan to the Icelandic government to ensure they could pay up for the closure of the banks.
Britain faced its share of troubles in this but companies that closed down as a result of the crisis and our vastly state owned banks dont even pay us dividends for the huge profits they are now paying. Nor do they seem interested in paying back money given to them in investment form by the government. Why should our banks be different from the Icelandic ones?
In a refferendum, Iceland voted 93% against an interest rate of 5% on the loan to Britain branding it an excessive interest rate which it quite rightly is excessive. The government should bear the responsibility of the loss and write off all interest on the loan – call it a we’re saving the world act.