Identifier
Created
Classification
Origin
10THEHAGUE5
2010-01-08 07:08:00
UNCLASSIFIED
Embassy The Hague
Cable title:  

NETHERLANDS: FINANCE MINISTER BOS UNLIKELY TO BEND ON

Tags:  ECON EFIN EINV PGOV NL 
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VZCZCXRO3139
RR RUEHIK
DE RUEHTC #0005 0080708
ZNR UUUUU ZZH
R 080708Z JAN 10
FM AMEMBASSY THE HAGUE
TO RUEHC/SECSTATE WASHDC 3630
INFO RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHINGTON DC
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHBS/USEU BRUSSELS 0712
RUEHRK/AMEMBASSY REYKJAVIK 0046
RUEHAT/AMCONSUL AMSTERDAM 4287
UNCLAS THE HAGUE 000005 

SIPDIS

STATE FOR EUR/WE (VBELON),EEB/IFD
TREASURY FOR IMI/OASIA/VATUKORALA
USDOC FOR 4212/USFCS/MAC/EURA/OWE/DCALVERT
USEU FOR TREASURY ATTACHE MATT HAARSAGER

E.O. 12356: N/A
TAGS: ECON EFIN EINV PGOV NL
SUBJECT: NETHERLANDS: FINANCE MINISTER BOS UNLIKELY TO BEND ON
ICESAVE DEAL

REFTEL: REYKJAVIK 0003

UNCLAS THE HAGUE 000005

SIPDIS

STATE FOR EUR/WE (VBELON),EEB/IFD
TREASURY FOR IMI/OASIA/VATUKORALA
USDOC FOR 4212/USFCS/MAC/EURA/OWE/DCALVERT
USEU FOR TREASURY ATTACHE MATT HAARSAGER

E.O. 12356: N/A
TAGS: ECON EFIN EINV PGOV NL
SUBJECT: NETHERLANDS: FINANCE MINISTER BOS UNLIKELY TO BEND ON
ICESAVE DEAL

REFTEL: REYKJAVIK 0003


1. The Government of the Netherlands (GONL) is unlikely to accept
any solution other than full repayment of the 1.3 billion euro (USD
1.87 billion) loan it issued to the Government of Iceland in 2008.
The loan was to help Iceland repay Dutch deposit holders after the
bankruptcy of Internet bank Icesave, part of the Landsbanki. The
GONL is highly displeased with the January 5 decision by Icelandic
President Grimsson not to sign a bill that would have guaranteed
full repayment of the loan and to refer the matter instead to a
public referendum (reftel). (Note: Iceland passed a bill in August
2009 that also provided for full repayment, but the GONL rejected it
as insufficient, as it contained problematic amendments such as an
end-date for repayment regardless of whether all debts had been
paid. End note.)


2. In his official statement on January 5, Dutch Finance Minister
(and Deputy Prime Minister) Wouter Bos said he was "very
disappointed" that President Grimsson had not signed the bill. "The
Netherlands, in any event, insists that Iceland is obliged to repay
the loan," said Bos. "It is unacceptable that the Icesave issue has
not yet been resolved. The Netherlands will shortly enter talks
with the United Kingdom [which similarly provided a loan to Iceland
to cover debts to British deposit holders in Icesave] to discuss
this." Bos noted that "blocking the repayment will not increase
[Dutch] enthusiasm for support from the IMF to Iceland". Age
Bakker, the Dutch Executive Director at the IMF, said that there
would be "firm discussions" with Iceland. Rochus Pronk, Deputy
European Correspondent at the Dutch Ministry of Foreign Affairs,
also told us recently that the GONL would be unlikely to support
Iceland's candidacy for EU membership until the Icesave issue is
adequately resolved. Most Dutch political parties, including those
in the opposition, support Bos's firm position; the Liberal Party
(VVD) has called for an emergency debate to urge Bos to take an even
harsher stance, including legal action.


MANN