So the Bank of England has loaned £100m to Landsbankinn to try to “buy enough time” to settle UK claims.
Let’s be clear – Iceland currently has billions of pounds of UK cash frozen in their banks, and we can’t get at it unless their government agrees.
This week we’ve discovered that UK banks hold Icelandic deposits of around £4,000,000,000 – more than enough to settle our account – on deposit, which many say we should freeze in a ‘quid pro quo’, if you’ll excuse the pun.
Such action seems tame compared to the anti-terrorism laws we tried last week to resolve the issue.
But instead, the Bank of England has just given them another hundred million pounds of our money.
How does that work then?