Example letter to IMF

Example letter to IMF

This was a letter composed by bblair and sent out by other members here to the IMF a couple of weeks ago. Please feel free to copy it and send to the IMF.

Another e-mail address for them is:

publicaffairs(?)imf [dot] org

Dear Sir / Madame,

I am a depositor in the Isle of Man subsidiary of the Icelandic bank called Kaupthing hf. I am also a member of the KSF(IoM) Action Group - a group of depositors who's have been financially ruined by Kaupthing's recent demise.

It is my understanding that the IMF is currently negotiating a loan package with the government of Iceland to help stabilize its financial system, strengthen its currency and provide for adequate foreign currency reserves. First let me say that I applaud this initiative and wish only the speediest recovery for the Icelandic economy.

However, as you may know, a consequence of Iceland's collapse is that its three major banks have failed - its foreign subsidiaries ringfenced or taken into administration outside of Iceland and the parent banks have been nationalized. The approach to these nationalizations has given great cause for concern among each banks' international depositors and creditors. In general it appears that the banks assets and operations have been absorbed by "new" entities and these new banks are failing to honor the obligations of the old banks which are now defaulting on foreign bonds, deposits and deposit guarantees.

As much as I and, I am sure, my fellow depositors with Kaupthing Singer & Friedlander (IOM) wish only the very best for Iceland's future financial well-being, I think it is only fair to ask that the IMF attach conditions to its financial aid package that provide for the satisfaction of its international obligations and parental guarantees.

Can you please provide me with some assurance that Iceland's aggressive nationalization efforts and the resulting injury to foreign depositors and creditors will not be condoned by the IMF's unconditional support in this regard? Many of my fellow depositors have lost their entire life savings and are financially ruined - please tell me that the IMF is not expecting these individuals to be sacrificed while Iceland is restored to financial health.

I look forward to your kind attention to this matter.



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