Preliminary Findings of the EFTA Surveillance Authority in Additional Cases Concerning Iceland´s Emergency Act No 125/2008
As previously reported, in a letter of 4 December 2009, the EFTA Surveillance Authority (ESA) gave notification that it had reached a preliminary conclusion on a complaint from a group of general creditors of the former banks concerning actions by Icelandic authorities in connection with the adoption of Act No. 125/2008 (referred to as the “Emergency legislation”). ESA's preliminary conclusion was that the provisions of the legislation, in particular the priority granted to deposits, and measures taken by the Icelandic authorities based on the legislation comply with the EEA agreement and other legal obligations. ESA points out that no remedies other than those applied were visible which could have prevented the complete collapse of the Icelandic economy. Furthermore, ESA accepts the view of the authorities that the Emergency legislation and decisions by the Financial Supervisory Authority (FME) were the only credible actions available under the circumstances.
ESA has now also given notification of its preliminary views on seven other complaints from foreign financial institutions which are general claimants of one or another of the former banks concerning the legislation and actions by Icelandic authorities in connection with them. ESA's preliminary findings are in all instances similar to that of 4 December, i.e. it accepts the arguments advanced by Iceland in these cases, the priority granted to deposits is legitimate, in ESA's assessment, and the Icelandic authorities were, in the estimation of the Authority, entitled to safeguard the banking system and security of the general public. There is no discussion of possible discrimination between domestic and foreign deposit holders in any of these cases, any more than in the case for which notification was sent on 4 December.
The original documents are:
Further information is avaiable from Jóhannes Karl Sveinsson, Supreme Court Attorney, of the legal office Landslög, who served as legal representative for the Prime Minister's Office in this case.
Reykjavík, 15 December 2009