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Facts
The 60-year-old
Geir Haarde of the Icelandic conservative Independence Party was Prime
Minister of Iceland from June 2006 to February 2009.
Icelandic banks engaged the same time in increasingly reckless lending activities.
When the crisis hit in the fall of 2008, banks had loan obligations, which were nine times larger than Iceland's GDP.
Icelandic
government took over the nation's largest banks: Glitnir, Landsbanki
and Kaupthing. That broke financial system together.
Haarde resigned
after several months of angry and loud popular protest outside
Parliament, the Althing, when the so-called pan insurgency became part
of the protest.
A report named
seven ministers responsible for the crisis. But in 2010 the Althing
decided by a vote of 33-30, to only hold Haarde accountable and should
be prosecuted.
Haarde risks two years in prison and hefty fines if convicted.
Iceland opened trail of former Prime Minister Geir Haarde
Tuesday, 06 March 2012
The Icelandic
authorities are determined to start the process of prosecuting its
former Prime minister, Geir Haarde on charges relating the to poor
management of the economy when which collapsed in 2008. According
to Geir Haarde, it is a prosecution without cause when his
trial began on Monday.
Impeachment
trial, which applies to Haardes responsibility of the Icelandic
financial system collapsed in the autumn of 2008 has been described as
unique. The 60-year-old Haarde is the only politician so far who has
been called to account for policy mistakes made during the recent
financial crises.
Landsdomur (National Court) was established in Iceland for over 100 years ago, but has never before been called.
The process is
so rare that one need to go back long in history to find the trial
against Finnish President Risto Ryti and Norway's "Führer" Vidkun
Quisling after the war to equate something similar in the Nordic
region.
In Europe,
perhaps the most controversial trial and prison sentence was seen
against former Ukrainian Prime Minister Yulia Tymoshenko for "abuse of
power". In Iceland though, Haarde risks two years in prison and hefty
fines if convicted.
Haarde, who
earlier called the trial a "farce", said during Monday's hearing that
he rejected all indicted and regard the charges as "baseless".
The
investigation carried out after the bank collapses pointed out seven
politicians accused to be accountable. However, it was later voted in
the Icelandic parliament, Althing, that only Haarde would be held
accountable.
The most
serious indictment which was "gross negligence" was withdrawn as early
as last fall. The trial is expected to continue until March 15, but it
is unclear when the judgment will come thereafter.
Haarde has no regrets:
“We saved the
country from bankruptcy. It is so much clearer now when you look at the
situation and compare it to Ireland, not talk of Greece,” said Haarde
recently.
Although the
economy is recovering, the country still has intense currency problems.
The crown regained only half its value it had before the crisis. The
problems are so great that there is talk of ditching the crown and
joinning the Canadian dollar.
By Scancomark .se
Facts
The 60-year-old
Geir Haarde of the Icelandic conservative Independence Party was Prime
Minister of Iceland from June 2006 to February 2009.
Icelandic banks engaged the same time in increasingly reckless lending activities.
When the crisis hit in the fall of 2008, banks had loan obligations, which were nine times larger than Iceland's GDP.
Icelandic
government took over the nation's largest banks: Glitnir, Landsbanki
and Kaupthing. That broke financial system together.
Haarde resigned
after several months of angry and loud popular protest outside
Parliament, the Althing, when the so-called pan insurgency became part
of the protest.
A report named
seven ministers responsible for the crisis. But in 2010 the Althing
decided by a vote of 33-30, to only hold Haarde accountable and should
be prosecuted.
Haarde risks two years in prison and hefty fines if convicted.
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