

Currently released so far... 6230 / 251,287
Articles
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Amsterdam
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lagos
Mission USNATO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate Shenyang
Consulate Shanghai
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Tijuana
USUN New York
USEU Brussels
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Browse by tag
ASEC
AF
AE
AR
AORC
AJ
AU
AM
ABLD
AL
AMGT
ASUP
AFIN
APER
ABUD
AVERY
APCS
AEMR
ADCO
APECO
ASIG
AG
AA
AS
AFFAIRS
ASECKFRDCVISKIRFPHUMSMIGEG
AMED
AO
ACOA
AX
AROC
ATFN
ASEAN
AFGHANISTAN
AFU
AER
ALOW
AODE
ATRN
AID
AC
AGMT
CH
CO
CS
CE
CU
CLINTON
CG
CVIS
CMGT
CI
CJAN
CF
COM
CASC
CA
CBW
CM
CDG
CR
COUNTER
CD
CWC
CKGR
CN
CPAS
CJUS
CV
CONS
CT
CY
COUNTERTERRORISM
CIA
CACM
CDB
CAN
COE
COUNTRY
CLEARANCE
CACS
CONDOLEEZZA
CARSON
CL
CIS
CODEL
CTM
CB
ECON
EFIN
EAIR
EUN
EINV
ENRG
EG
ETRD
EPET
ETTC
ELAB
EU
ER
ET
EAGR
ECPS
ECIN
ELTN
EAID
EMIN
EWWT
EFIS
EIND
EC
ES
EN
EI
ENVR
ENGR
ENIV
EUNCH
ENVI
ETRDEINVECINPGOVCS
ELN
EZ
EXTERNAL
EINVECONSENVCSJA
EINT
EUR
ECINECONCS
ENNP
EFINECONCS
EK
ELECTIONS
ECUN
EINVEFIN
ECIP
EINDETRD
EUC
EREL
ECA
ENERG
ENGY
ETRO
EFTA
ECONCS
ECONOMICS
ECONEFIN
EINVETC
EINN
ESA
ETC
ETRDEINVTINTCS
ESENV
ETRDECONWTOCS
IN
IC
IR
IZ
IS
IAEA
IT
ICTY
IO
IA
IWC
ID
ICRC
ILC
INTELSAT
IMO
ISRAELI
IACI
ILO
ITRA
IBRD
IMF
ICJ
ICAO
ITALY
ITALIAN
IRAQI
INTERPOL
IV
IQ
IPR
INRB
ITPHUM
IIP
IL
INR
ITPGOV
IZPREL
IRC
INRA
INRO
IRAJ
IEFIN
IF
KDEM
KCRM
KJUS
KTIA
KWBG
KPAL
KIPR
KTIP
KE
KNNP
KGHG
KICC
KV
KTFN
KU
KCFE
KDRG
KWMN
KSCA
KGIC
KCOR
KFRD
KPKO
KSUM
KPRP
KPAO
KBCT
KIRF
KCFC
KISL
KREC
KSPR
KHIV
KBIO
KMCA
KMPI
KFLU
KSTH
KBTR
KS
KOMC
KOMS
KSEP
KPRV
KFLO
KHLS
KN
KWWMN
KUNR
KLIG
KSTC
KZ
KG
KRAD
KOLY
KTBT
KTDB
KOCI
KAWK
KCIP
KNPP
KWAC
KMDR
KAWC
KIDE
KSAF
KX
KWMNCS
KNEI
KCRS
KVPR
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KACT
KO
KFSC
KR
KPWR
KMIG
KSEC
KIFR
KDEMAF
KFIN
KGCC
KPIN
KPLS
KIRC
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KGIT
KBTS
KERG
KWMM
KRVC
KNSD
KVIR
KNUP
KTER
KDDG
KHSA
KMRS
KHDP
KTLA
KPAK
KNAR
KREL
KPAI
KTEX
KCOM
KNNPMNUC
KPOA
KRFD
KHUM
KDEV
KNUC
MOPS
MARR
MASS
MNUC
MO
MX
MCAP
ML
MTCRE
MR
MP
MY
MU
MIL
MAR
MC
MRCRE
MTRE
MA
MEPI
MV
MPOS
MD
MZ
MEPP
MOPPS
MAPP
MASC
MT
MERCOSUR
MK
MDC
MI
MAPS
MCC
MASSMNUC
MQADHAFI
MUCN
MTCR
MG
OREP
OVIP
OFDP
ODIP
OPDC
OAS
OTRA
OSCE
OECD
OIIP
OEXC
OPCW
OPIC
OPRC
OVP
OSCI
OTR
OSAC
OIC
OFFICIALS
OIE
PHUM
PREL
PGOV
PREF
PTER
PARM
PBTS
PINR
PINS
PHSA
PK
POL
PM
PINT
PE
PINF
PEL
PA
PARMS
PO
PLN
PROP
PALESTINIAN
PAO
PL
POV
PG
POLITICS
PEPR
PSI
PSOE
PU
POLITICAL
PARTIES
PBIO
PECON
PAK
POGOV
PINL
PKFK
PMIL
PY
PFOR
PHALANAGE
PARTY
PRAM
PMAR
PGOVLO
PUNE
PORG
PHUMPREL
PF
POLINT
PHUS
PGOC
PNR
PGGV
PNAT
PGOVE
PRGOV
PRL
PROV
PTERE
PGOF
PHUMBA
SENV
SY
SZ
SOCI
SO
SR
SNAR
SA
SP
SW
SMIG
SU
SCUL
SC
SAN
SN
SL
SG
SYR
SEVN
SF
SI
STEINBERG
SIPRS
SH
SNARCS
SOFA
SANC
SHUM
SK
ST
TRGY
TU
TBIO
TH
TS
TSPL
TT
TPHY
TSPA
TI
TK
TIP
TERRORISM
TZ
TX
TW
TD
TP
TC
TO
TNGD
TINT
TRSY
TR
TFIN
TURKEY
UK
UNGA
UN
UNHRC
UNMIK
UNO
UZ
UNSC
UP
UG
UNHCR
UNDC
US
UNAUS
USTR
UV
UNEP
UY
UNESCO
USUN
UAE
USEU
UNDP
UNCHS
UNVIE
UNCHC
UE
UNDESCO
USAID
Browse by classification
Community resources
courage is contagious
Viewing cable 08REYKJAVIK219, ICELANDIC GOVT TAKES CONTROL OF BANKING SECTOR AMID CRISIS
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #08REYKJAVIK219.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
08REYKJAVIK219 | 2008-10-07 11:11 | 2011-01-13 05:05 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Reykjavik |
VZCZCXRO0146
OO RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHRK #0219/01 2811153
ZNR UUUUU ZZH
O 071153Z OCT 08
FM AMEMBASSY REYKJAVIK
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3826
INFO RUCPDOC/USDOC WASHDC IMMEDIATE
RUEATRS/DEPT OF TREASURY WASHINGTON DC IMMEDIATE
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS SECTION 01 OF 02 REYKJAVIK 000219
USDOC FOR LEAH MARKOWITZ
TREASURY FOR LAWRENCE NORTON
STOCKHOLM FOR FCS
SIPDIS
SENSITIVE
E.O. 12958: N/A
TAGS: ECON EFIN PGOV IC
SUBJECT: ICELANDIC GOVT TAKES CONTROL OF BANKING SECTOR AMID CRISIS
REFS: A) Reykjavik 217 B) Evans-Norton telecon C) Evans-Meyers
telecon
¶1. (U) Summary: Prime Minister Geir H. Haarde addressed the nation
late on October 6 with a sober message: the banking system in
Iceland was broken because of the global liquidity crisis and the
government was taking emergency action to save Icelanders' domestic
savings. Immediately following his address, Haarde presented
emergency legislation at Althingi (Parliament) which passed just
before midnight. This legislation gave the Icelandic government
power to create financial institutions and to intervene in existing
ones. It removed the cap on insurance for domestic savings deposits
in Icelandic krona and allowed the State Housing Fund to take over
all mortgages.
¶2. (SBU) Summary continued: Icelanders woke up on October 7 to
learn that Landsbanki, the biggest bank in Iceland, was being taken
over by the Financial Supervisory Authority. They heard assurances
that domestic savings were safe and domestic banking operations
would continue. The Icelandic krona started trading at 127 to USD,
over a 100 percent devaluation from January 1 and bad news for
Icelanders who have foreign currency mortgages and car loans, but
the Central Bank quickly pegged the krona at 96 to USD. A five
member team from the International Monetary Fund arrived on Sunday
at the invitation of the Prime Minister and is providing advice.
The media reported that Russia is offering a 4 billion euro loan to
the Central Bank but there has been no official announcement that
the loan is accepted or how that will affect the current situation.
We continue to monitor this fluid situation. End Summary.
¶3. (U) Following a weekend of continuous meetings with stakeholders,
Prime Minister Geir H. Haarde addressed the nation at 4:00 pm on
October 6 with serious news. He explained the current financial
crisis was a global problem and Icelandic banks' past success meant
that their liabilities are too large for the government (we
understand about eight times GDP) to offer them a secure lifeline.
Haarde hinted that the Icelandic financial system might be at the
edge of breakdown and he would not risk Iceland's future for a
bailout. He said the banking system would have to be redesigned
for Iceland before it could conduct international business again and
announced that the buying and selling of stocks in the financial
institutions would continue to remain frozen. He said that all of
the nation's savings deposit would be secured. He called for unity
among people and that the nation should stick to the values they
hold dearest. Haarde reminded that Iceland was blessed with natural
resources and that would ensure a bright future even if the
financial system will need to be rebuilt. He closed his address
with "God Bless Iceland," a phrase rarely used by politicians here.
¶4. (U) Soon after the address, the PM introduced emergency
legislation at the Althingi (Parliament) which shortly passed before
midnight with a few minor changes suggested by the opposition. The
newly passed emergency legislation gives the Icelandic government
power to create financial institutions and to intervene in existing
ones. Under the law, the government has wide-ranging authority to
take over banks, seize control of management and direct asset sales.
The bill will also allow the government to take over housing loans
held by the banks and put them in a government housing fund, an
effort to help thousands of Icelanders who faced the loss of their
homes amid rising payments due to inflation and the krona's
devaluation (Note: All mortgages are inflation indexed and many were
denominated in foreign currency. End Note.) A critical part of the
new law is that Government of Iceland ensures that deposits in
domestic commercial and savings banks and their branches in Iceland
will be fully covered. "Deposit" refers to all deposits by general
customers and companies which are covered by the Deposit Division of
the Depositors and Investors Guarantee Fund.
¶5. (U) On October 7, the Icelandic Financial Supervisory Authority
(FME) announced that it had proceeded to take control of Landsbanki,
the largest bank in Iceland. The FME announced in a statement that
all domestic deposits are fully guaranteed and that all Landsbanki
domestic branches, call centers, ATMs, and Internet operations will
be open for business as usual. The statement continued that the
action taken is a necessary first step in achieving the objectives
of the Icelandic Government and Parliament to ensure the continued
orderly operation of domestic banking and the safety of domestic
deposits.
¶6. (U) At opening of business on October 7, the Icelandic krona was
trading at 127 to USD, over a 100 percent devaluation from January
¶1. The media reported at 10 am local time that the krona is now
pegged at 96 to USD. The Central Bank announced the fixing of the
krona at a rate corresponding to 131 per euro, effective immediately
and that further moves to boost the currency will be announced in
coming days.
¶7. (SBU) A five member team from the International Monetary Fund
arrived on Sunday at the invitation of the Prime Minister. Econoff
talked with Rodolfo Luzio of the IMF team who confirmed that they
are providing advice to the Government and that all options are on
REYKJAVIK 00000219 002 OF 002
the table for IMF assistance. Luzio said that the IMF had been
watching Iceland for some time and had visited earlier this summer.
He noted that the situation was very fluid and he was unable to
predict how long he would be in Iceland or what assistance would be
provided. Luzio said that the plan for bank intervention was a done
deal before they arrived on October 5.
¶8. (U) On October 7, the Russian Ambassador to Iceland, Victor
Tatarintsev, informed David Oddsson, the Chairman of the Board of
Governors of the Central Bank of Iceland, that Russia will provide
Iceland with a 4 billion Euros or 5.4 billion USD loan. The Central
Bank said in a statement that the loan would substantially
strengthen Iceland's foreign reserves and support the Icelandic
krona. The Central Bank said the loans were for three to four years
on terms that would be 30-50 points above Libor rates. According to
Reuters, Russian Deputy Finance Minister Dmitry Pankin said no
decision had been taken on the loan.
VAN VOORST