Icelanders storm the Central Bank
Icelanders marked their 90th anniversary of sovereignty from Denmark Monday by taking to the streets in protest against the rapid devaluation of their currency and storming their Central Bank, Seðlabanki.
The tiny Nordic nation of 300,000, which only last May was named “The Happiest Place On Earth” by the UN, saw its fortunes turn on its head in a matter of days in October after its banks, Kaupthing, Landsbanki and Glitnir, collapsed under the weight of billions of dollars of debt accumulated in an aggressive overseas expansion. While all three banks have been nationalized, Glitnir filed for bankruptcy protection on November 26th and Iceland’s largest bank, Kaupthing, filed on Monday.
Thousands attended a peaceful anti-government rally in downtown Reykjavik, chanting slogans, carrying signs and singing.
The rally then developed into a march on the Icelandic Central Bank, where the crowd of several hundred held a tense stand off with riot-gear-clad police. Protesters calling for the sacking of Central Bank chair David Oddsson threw eggs and red paint at the building, but were prevented from entering by the riot police. The crowd refused to leave “until the curly haired man leaves too”, referring to Oddsson. The protest ended peacefully after Police Chief Geir Jon Thorisson entered the crowd and rationally persuaded the protesters to leave as the riot police withdrew from their positions.
Icelandic PM Geir H. Haarde has refused to accept responsibility for the economic crisis, saying he is concerned with leading his country through the crisis. Haarde easily survived a no confidence vote in the Icelandic parliament, Althingi, and elections will not be held until 2011.
Haarde predicts even stormier seas for Iceland in 2009, but predicts an economic recovery in 2010. “I believe that as we move through next year into 2010 we will see a much brighter picture, with positive economic growth, less unemployment,” he said. “But it will take time.”
Haarde also said a criminal investigation was under way to determine whether Iceland’s bankers were guilty of wrongdoing. “If people broke the law of course they will be prosecuted,” he said.
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