Diesel Generator: A Quick Access Power Source

WcKskV5C | Off Road Carts | 08 18th, 2019  |  No Comments »

Diesel Generator: A Quick Access Power Source

by

Katie Janet Josh

Generators have long been an alternative source of power. Its use varies from the industrial to personal need. The product specifications of generators can be known by just reading its brochure and the technical nature of which are lengthily discussed by other sources in the web. However, this article will tackle only the basic issues and benefit of owning a diesel generator and everyday impact to the public. In fact, boring you with every data available is actually counterproductive. Perhaps, it might be interesting to discuss the beneficial use of owning one.

Electricity is probably the main source of power that is used every day. Its use is evidently manifested even in the everyday jobs that we do. Our homes cannot run smoothly without it. A good rest is not possible without electricity powering the air-conditioning unit. Offices will not be a conducive place to work. All in all, without electricity man will be thrown back to the Stone Age, and every industrial endeavor for advancement and development would stop to a grinding halt.

YouTube Preview Image

Diesel Generators are very handy as an external source of power. Power shortages are common nowadays and unexpected power interruption would likely happen without warning. Stand-by power generators are a necessity for every business establishment as well as for the home. They come in every possible size to accommodate the requirements of consumers. Compact ones can provide basic electrical power to light up a house during power interruption. On the other hand, Industrial grade diesel generator can even produce enough electrical power to light up the entire City and even neighboring cities in the event of power shortages and interruption. The conventional use of diesel generator has benefited different sectors on our society. A few of these are construction companies that rely most on the convenience and capability of diesel generators to provide the needed electricity on work sites. Financial centers in cities around the world banked on the diesel generators to aid and furnish them the needed power source in case of emergency. Even, when calamity strikes or in case of natural disaster, portable diesel generators always play an important part in making a difference.

These industrial machines be it a compact one or and industrial grade are not hard to maintain. On the average, diesel generators would only require a regular check-up and the needed oil change just like the regular car. They have a higher fuel efficiency ratio compare to a gasoline operated generating sets. Considering that diesel fuel is much cheaper that gasoline diesel generators, extraordinary expenses on fuel are lesser compared to the gasoline generators.

The convenience and the benefit that goes with acquiring a diesel generator greatly balanced the cost that comes with it. It is convenient to own one right now than be caught in the dark. Generators have gained a status of necessity in the modern world, cause without it there would never be a light in the end of the tunnel.

Expert articles on

Diesel Power Generators

and

Gas Power Generators

Article Source:

ArticleRich.com

New video games rating R18+ becomes available in Australia

WcKskV5C | Uncategorized | 08 18th, 2019  |  No Comments »

Wednesday, January 2, 2013

A new Australian adult video game classification, R18+, came into effect starting yesterday.

The new rating brings greater consistency between Australia’s systems of video game ratings and film ratings. Previously video game classification went no higher than MA15+, so more adult video games would have to be either classed as MA15+ or denied classification.

The government passed the legislation in June after a deal was agreed between the states, territories, and Commonwealth.

Video game ratings have been the center of long running public debate in Australia with some interest groups concerned that children may gain access to more violent games while proponents claim that the new adults only rating will guard children from inappropriate content.

The deal which allowed the legislation to proceed was struck after John Rau became Attorney General of South Australia. Mr Rau has been a vocal supporter of the change.

Former Satyam CEO Raju, his brother and CFO arrested and detained in profit-fraud scandal

WcKskV5C | Uncategorized | 08 18th, 2019  |  No Comments »

Monday, January 12, 2009

Byrraju Ramalinga Raju, founder and chairman of Satyam Computer Services, and his brother, B. Rama Raju, the company’s managing director, were arrested late Friday by Andhra Pradesh police. The brothers were placed under judicial custody in a Hyderabad, India jail and will remain there until January 23. Facing charges of criminal breach of trust (Section 406 of IPC), criminal conspiracy (Section 120-B), cheating (Section 420), falsification of records and forgery (Section 468), and fraudulent cancellation of securities (Section 477-a), they face up to ten years imprisonment if convicted.

After 18 hours of interrogation by the Crime Investigation Department (CID) at the state police headquarters, the Raju brothers were sent to the Chanchalguda prison and slept Saturday night on the floor along with 26 other low-risk inmates.

S. Bharat Kumar, the Rajus’s lawyer, asked the magistrate to issue orders for health monitoring. “His blood pressure is fluctuating and he needs medical treatment,” said Bharat Kumar. Mr. Raju appeared before the court Saturday while a team of doctors visited him after he had complained of chest pain.

Raju has Hepatitis-C, and both brothers have high blood pressure, so health precautions are necessary while imprisoned. Prison rules mandate service of jail food thrice a day. The menu includes 650 gm of rice thrice a day with 250 gm of vegetable curry and 125 gm of ‘daal’ plus tea twice a day.

Satyam’s chief financial officer Vadlamani Srinivas, who was also arrested Saturday, had undergone preliminary investigation and appeared Sunday before a special court, according to A. Sivanarayana, Andhra Pradesh additional director general of police. Srinivas was remanded to judicial custody until January 23 by Mr. D. Ramakrishna, Sixth Chief Metropolitan Magistrate, and sent to the Chanchalguda jail with the Raju brothers after interrogation by CID’s Crime Branch (the CB-CID). During his Saturday night arrest and probe by CB-CID, Srinivas made revelations which are contained in his confession letter as submitted to Network 18. “According to me fixed deposits are unreal and fictitious which were managed and was an understanding between the audit section management,” Srinivas stated.

The Hyderabad court on Monday postponed the bail hearings of the Raju brothers and Srinivas to January 16. To be defended by a battalion of 25 lawyers, the three accused will remain in Chanchalguda Central Jail until further court order. The Raju brothers were shifted Sunday to a mid-size Old Hospital Barrack cell shared with a bootlegger.

Contents

  • 1 The offences
  • 2 About Satyam Computer Services
  • 3 Impact on Satyam Computer Services finances and reactions
  • 4 Related news
  • 5 Sources

In 2008, the company struggled to purchase two infrastructure companies founded by family members of company founder and CEO Dr. Raju – Maytas Infrastructure and Maytas Properties – for $1.6 billion, despite concerns raised by independent board directors. Dr. Raju tendered his resignation on January 7 after due notice of falsified accounts to board members and the SEBI.

Since January 7 when two lawsuits were commenced, dozens of other class action law suits were filed against Satyam for hundreds of millions of dollars damages based on fraud in the United States District Court for the Southern District of New York in Manhattan, among others. The securities fraud class-action lawsuits have been filed on behalf of investors who bought Satyam American Depositary Receipts (ADRs) since 2004.

On Wednesday Dr. Raju admitted to falsifying and overstating Satyam’s cash reserves by $1B US dollars (£661m) or 94% of its cash and bank balances on books at the end of September.

The fraud was perpetrated several years ago to bridge “a marginal gap” between actual and accounting books operating profits, and continued for several years. “It was like riding a tiger, not knowing how to get off without being eaten,” B. Raju said.

In a letter to the board, Dr. Raju said that neither he nor the managing director had benefited financially from the inflated revenues. Further claiming that none of the board members had any knowledge of the dire company situation, he noted that Satyam’s balance sheet as of the September 30, 2008, carried inflated figures for cash and bank balances of INR 5,040 crore (as against INR 5,361 crore reflected in the books). He alleged it also carried an accrued interest of INR 376 crore which was non-existent. He confessed that he himself prepared an understated liability of INR 1,230 crore on account of funds amid an overstated debtors’ position of INR 490 crore (as against INR 2,651 crore in the books).

Indian analysts have compared the Satyam-Raju scandal to the infamous American Enron scandal. Immediately following the media expose, PricewaterhouseCoopers, auditor of Satyam’s accounts, was set to be probed for complicity in the controversy. Times Now has reported that the Andhra Pradesh CID arrested PricewaterhouseCoopers (PWC) representative Gopal Krishnan for investigation on Saturday night.

New York-listed Satyam Computer Services Ltd., India’s fourth-biggest software firm, is a consulting and information technology services company based in Hyderabad, India. Founded in 1987 by Dr. Byrraju Ramalinga Raju, Satyam’s network spans 67 countries on six continents. It employs 53,000 professionals in India, the United States, the United Kingdom, the United Arab Emirates, Canada, Hungary, Singapore, Malaysia, China, Japan, Egypt and Australia. Its monthly salary outflow is estimated at six billion rupees ($125 million). Deriving more than half of its revenues from the United States, it serves 700 global companies, 185 of which are Fortune 500 corporations.

Satyam’s clients include Nestle, Ford, General Electric Co., General Motors Corp., Nissan Motor Co., Applied Materials Inc., Caterpillar Inc., Cisco Systems Inc. and Sony Corp., and brought in about $40bn last year.

In December 2008, a failed acquisition attempt involving the company Maytas led to a plunge in Satyam’s share price. After Wednesday’s confession, Satyam stocks fell further by more than 70%, while the BSE SENSEX dropped to 7.3% Wednesday, causing the removal of Satyam Computer Services from its indices on Thursday. The shares free fell to 11.50 rupees on Friday, their lowest level since March 1998, compared with around last year’s high of 544 rupees.

The New York Stock Exchange has terminated trading in Satyam stock as of January 7, while the National Stock Exchange of India said it will remove Satyam from its S&P CNX Nifty 50-share index from January 12.

India’s biggest-ever corporate fraud has seriously tainted India Inc.‘s strong corporate governance image. “The admission of fraud in financial affairs has created an adverse impression in the minds of trade, business and industry across the world,” the Indian government admitted. The government intervened on Friday night, dismissing Satyam’s board of directors, announcing it will appoint representatives to manage the affairs of the insolvent outsourcing giant. The board would meet within seven days. Dr Yeduguri Samuel Rajasekhara Reddy, chief Minister of State of Andhra Pradesh, India, on Sunday said that the main agenda is to protect the jobs of the software professionals. “We are taking all needful steps in coordination with the government of India to ensure that the jobs of 53,000 engineers are protected and the shareholders’ money is salvaged,” Reddy said.

“We are working on the names. The Satyam case is an aberration. The credibility of the Indian corporate sector in general, and IT sector in particular, should not be allowed to suffer because of this.” Prem Chand Gupta, the Corporate Affairs Minister said. The Federal Government of India appointed a three-member independent board with full authority for Satyam on Sunday and was set to convene within 24 hours. “We have appointed Deepak Parekh, chairman of Housing Development Finance Corporation, Kiran Karnik, former president of IT industry body NASSCOM and C. Achutan, former member of Securities and Exchange Board (SEBI) of India,” Mr. Gupta said.

In early Monday trading (0535 GMT) after the creation of the three-member board, Satyam shares rocketed upwards 60% to 38.15 rupees, even though the main Mumbai market was down more than 2%. BBC reported that Satyam shares have jumped 51% to 36.05 rupees on Monday after the stock lost 87% last week. “The constitution of the new board is seen as a positive step by the market. It’s a confidence boosting measure,” K.K. Mital, Globe Capital, New Delhi head of portfolio management services said. “But the rally will depend largely on the financial situation at the company and the kind of measures that are taken to improve liquidity,” he added.

The Company Law Board, however, has requested Satyam’s interim board not to implement its decisions. “We are asked by the Company Law Board not to implement the decisions of the board. But we are allowed to continue our activity. The team which was constituted recently is continuing its work,” Satyam head global marketing and communications, Mr. Hari Thalapalli, said.

Lazard Ltd., who has a 7.4% stake in Satyam, sought representation on the new board and wrote as much to The Indian Ministry of Corporate Affairs. “As the largest shareholder in the company, we want to be consulted in whatever decisions are being taken by the Indian government. We have written to the Ministry of Corporate Affairs and are awaiting a reply from them,” Hitesh Jain, a partner at ALMT Legal, who claimed to represent Lazard, said. “It is a fair proposal and we will take a decision as and when we clear other issues. No decision on this has been taken yet,” P.C. Gupta replied.

Meanwhile, the Securities and Exchange Board of India (SEBI) also announced it will try to control the damage and take steps to boost investor confidence. “This exercise will be undertaken after the third quarter results and is expected to be completed by end of February this year,” a SEBI official statement said. A SEBI team is also investigating acting-CEO Ram Mynampati whose salary was greater than that of founder Dr. Raju and all the directors combined. Dr. Raju had just one fifth of Mynampati’s total package of over Rs 3.5 crore as of March 2008. All the directors comparably received only a total of Rs 2.6 crore as salary, commissions, sitting fees, professional fees and other receivables.

Further, the Andhra Pradesh Police CID and teams assigned by the Economic Offences Wing of the CB-CID conducted searches Sunday of homes of the accused including the ex-CFO’s office to gather documentary evidence about the financial fraud.

BMW announces 7.6% sales rise as US, China demand grows

WcKskV5C | Uncategorized | 08 18th, 2019  |  No Comments »

Tuesday, August 9, 2011

Automobile manufacturing company BMW has announced that its sales increased by 7.6 per cent during the month of July. BMW reported that 129,094 units were sold during the month, consisting of the motor vehicle brands of BMW, Mini and Rolls-Royce Motor Cars.

In a statement, Ian Robertson, member of the Board of Management of BMW, told of the company reporting “the most successful July sales ever”, claiming that it is “well on [the] way to achieving our recently announced target of over 1.6 million vehicles in 2011, the best ever sales result for the BMW group”.

Demand increases were notable in the United States and China in particular. 21,409 vehicles were delivered by BMW in the United States in July, an increase of 11.7 per cent from July 2010. In China, 18,858 units were sold in the month, meaning a sales rise of 36.1 per cent on the same month last year, with the increased popularity being attributed to “substantial gains in many markets”, BMW said. Sales increases were also reported in South Korea, Russia, India and Brazil. BMW did admit to a decrease of sales by 0.8% in Germany, the country in which the company is based.

[BMW has had] the most successful July sales ever

As a brand, BMW sales stood at 108,721 for July, 7.1% more than July 2010. In the year to date, BMW delivered 962,468 vehicles, a 17.9 per cent rise. According to Agence France-Presse (AFP), developing markets have become the cause of the substantial popularity of high quality automobile manufacturers. However, growth in this area may decline later on in the year, due to the difficulties facing the global economy, AFP claims.

Meanwhile, General Motors stated on Friday that its China sales decreased by 1.8 per cent in July this year compared to the same month in 2010. This was due to a lowered demand for commercial vehicles, AFP reported.

Australian researchers confirm stress makes you sick

WcKskV5C | Uncategorized | 08 11th, 2019  |  No Comments »

Wednesday, December 7, 2005

Australian researchers say they have scientifically proven that stress causes sickness. The Garvan Institute in Sydney has discovered that a hormone, known as neuropeptide Y, (NPY) is released into the body during times of stress. Their findings show the hormone can stop the immune system from functioning properly.

Neuropeptide Y is one of those hormones that gets unregulated or released from neurones when stressful situations occur…it’s known for example that it regulates blood pressure and heart rates so your heart rate goes up but it hasn’t been known that it actually can affect immune cells as well,” said Professor Herbert Herzog, one of the researchers.

Herzog feels it is good to finally have proof of something people have suspected for so long.

“Now we have proven without doubt that there is a direct link and that stress can weaken the immune system and that makes you more vulnerable when you for example have a cold or flu and even in the more serious situations such as cancer can be enhanced in these situations,” said Herzog.

The Garvan Institute study centres on two key events that enable the human body to recognise foreign substances and control invaders. When our body encounters a pathogen (bacteria and viruses), the immune cells retain and interrogate suspects. Their activation is made possible by NPY. These cells then return to the lymph nodes, which are found all over the body, with information about the foreign invaders. The lymph nodes are where decisions about defence are made.

“Most of us expect to come down with a cold or other illness when we are under pressure, but until now we have mostly had circumstantial evidence for a link between the brain and the immune system,” said lead Garvan researcher, associate Professor Fabienne Mackay. “During periods of stress, nerves release a lot of NPY and it gets into the bloodstream, where it directly impacts on the cells in the immune system that look out for and destroy pathogens (bacteria and viruses) in the body.”

In the case of bacteria and viruses, TH1 cells are part of the attack team that is sent out on the ‘search and destroy’ mission. But when their job is done they need to be turned ‘off’ and the immune system reset. The same hormone, NPY, that activates the sentry cells now prompts the TH1 cells to slow down and die.

“Under normal conditions, circulating immune cells produce small amounts of NPY, which enables the immune cells on sentry duty and the TH1 immune cells to operate – it’s a yin and yang kind of situation. But too much NPY means that the TH1 attack is prevented despite the foreign invaders being identified – and this is what happens during stress,” added McKay.

The impact of stress on the body has been observed in athletes. Ph. D researcher at the University of Queensland, Luke Spence, together with the Australian Institute of Sport, studied elite and recreational athletes over five months.

They found elite athletes were more susceptible to respiratory diseases under stress.

“A lot of elite athletes put themselves through vast amounts of physical stress in their training, but also their emotional, psychological stress of feeling the pressure of Australia on their shoulders, wanting to compete and wanting to do their best,” said Spence.

It’s not just athletes who are prone to stress. Pressures at work and at home may cause emotional and mental stress that can be equally damaging. Almost a third of all work absenteeism in Australia is due to illness, costing employers over $10 billion a year.

“I think it has a huge impact for the work force and also for employers – if their employees are constantly stressed, constantly under pressure, they are more likely to get sick,” Spence said.

Further research could lead to the development of new drugs which may inhibit the action of the neuropeptide Y hormone.

Herzog warns people to minimise stress before it becomes a problem.

“Relaxation methods like yoga will help you to prevent that but there will still be people out there that are not responding to that and treatment by interfering with the system will be important,” he said. “There’s obviously some time until such a treatment will be available but this is something we will definitely work towards.”

The Garvan research will be published in the Journal of Experimental Medicine, Volume 202, No. 11.

News briefs:January 11, 2008

WcKskV5C | Uncategorized | 08 11th, 2019  |  No Comments »

Contents

  • 1 Wikinews News Brief 01-11-2008 01:20 UTC
  • 2 Introduction
  • 3 Events of worldwide notability, military action, disasters etc.
    • 3.1 At least 24 killed in suicide bombing in Pakistan
    • 3.2 Alabama father throws children in river
    • 3.3 British troops may have received contaminated blood from American donors
    • 3.4 George Bush arrives in Middle East
    • 3.5 Pentagon releases video of incident involving Iranian ships in Persian Gulf
    • 3.6 China has plan to obtain North Korea’s nuclear weapons
    • 3.7 Hezbollah network Al-Manar available to wider international audience
  • 4 Non-disastrous local events with notable impact and dead celebrities
    • 4.1 Moderate earthquake strikes off the Oregon coast, US
    • 4.2 Hollywood “Mayor” Johnny Grant dead at 84
    • 4.3 China bans free plastic bags
    • 4.4 John McCain and Hillary Clinton win New Hampshire primaries
    • 4.5 Canupa Gluha Mani speaks about Lakota Oyate, Lakota freedom
  • 5 Business, commerce and academia
    • 5.1 Singapore Airlines bid for China Eastern Airlines unsuccessful
    • 5.2 Apple to lower UK iTunes prices
  • 6 Arts and culture
    • 6.1 Global premiere of Lordi horror movie Dark Floors next month in Oulu, Finland
  • 7 Frivolities and trivia
    • 7.1 Fourteen days left to send National Geographic your shoe for world record
    • 7.2 Dr. Phil’s consultation meant to be private: Spears family
  • 8 Footer

[edit]

Ontario Votes 2007: Interview with Green Party candidate Torbjorn Zetterlund, Willowdale

WcKskV5C | Uncategorized | 08 11th, 2019  |  No Comments »

Saturday, October 6, 2007

Torbjorn Zetterlund is running for the Green Party of Ontario in the Ontario provincial election, in the Willowdale riding. Wikinews’ Nick Moreau interviewed him regarding his values, his experience, and his campaign.

Stay tuned for further interviews; every candidate from every party is eligible, and will be contacted. Expect interviews from Liberals, Progressive Conservatives, New Democratic Party members, Ontario Greens, as well as members from the Family Coalition, Freedom, Communist, Libertarian, and Confederation of Regions parties, as well as independents.

Bank of England governor warns housing market is biggest threat to UK economy

WcKskV5C | Uncategorized | 08 11th, 2019  |  No Comments »

Sunday, May 18, 2014

The governor of the Bank of England, Mark Carney, has warned that the state of the housing market in the United Kingdom is the current biggest domestic threat to the country’s economy, due to lack of house building, and regulatory issues.

In an interview to be aired on Sky News today, he said the housing market is the “biggest risk” to the economy and has “deep, deep structural problems”. Of house building he said: “There are not sufficient houses built in the UK. To go back to Canada, there are half as many people in Canada as in the UK, twice as many houses are built every year in Canada as in the UK and we can’t influence that.”

“We’re not going to build a single house at the Bank of England. We can’t influence that. What we can influence […] is whether the banks are strong enough. Do they have enough capital against risk in the housing market?”

Carney also said the Bank of England would look into the procedures used to issue loans and mortgages to see if they were being granted appropriately: “We’d be concerned if there was a rapid increase in high loan-to-value mortgages across the banks. We’ve seen that creeping up and it’s something we’re watching closely.”

Kris Hopkins responded to Carney on behalf of the government, saying the government “inherited a broken housing market, but our efforts to fix it are working”. “We’ve scrapped the failed top-down planning system, built over 170,000 affordable homes and released more surplus brownfield sites for new housing. We’ve also helped homebuyers get on the housing ladder, because if people can buy homes builders will build them. Housebuilding is now at its highest level since 2007 and climbing. Last year councils gave permission for almost 200,000 new homes under the locally-led planning system and more than 1,000 communities have swiftly taken up neighbourhood planning. It’s clear evidence the government’s long-term economic plan is working.”

Earlier this month, the Organisation for Economic Co-operation and Development called on the UK government to “tighten” access to the ‘Help to Buy’ scheme introduced by George Osborne and the coalition government in 2013. ‘Help to Buy’ has also recently been criticised by three former Chancellors of the Exchequer — the Conservatives Norman Lamont and Nigel Lawson, and former Labour Chancellor Alistair Darling. Darling said: “Unless supply can be increased substantially, we will exacerbate that situation with schemes like Help to Buy.”

US unemployment rate reaches 9.8%

WcKskV5C | Uncategorized | 08 11th, 2019  |  No Comments »

Friday, October 2, 2009

Companies in the United States are shedding more jobs, pushing the country’s unemployment rate to a 26-year high of 9.8%.

The US Labor Department said on Friday that employers cut 263,000 jobs in September, with companies in the service industries — including banks, restaurants and retailers — hit especially hard. This is the 21st consecutive month of job losses in the country.

The United States has now lost 7.2 million jobs since the recession officially began in December 2007. The new data has sparked fears that unemployment could threaten an economic recovery. Top US officials have warned that any recovery would be slow and uneven, and some have predicted the unemployment rate will top 10% before the situation improves.

“Continued household deleveraging and rising unemployment may weigh more on consumption than forecast, and accelerating corporate and commercial property defaults could slow the improvement in financial conditions,” read a report by the International Monetary Fund’s World Economic Outlook, predicting that unemployment will average 10.1% by next year and not go back down to five percent until 2014.

Mark Zandi, chief economist at Moody’s Economy.com, said that “it’s a very fragile and tentative recovery. Policy makers need to do more.”

“The number came in weaker than expected. We saw a lot of artificial involvement by the government to prop up the markets, and now that that is starting to end, the private sector isn’t yet showing signs of life,” said Kevin Caron, a market strategist for Stifel, Nicolaus & Co.

Also on Thursday, the US Commerce Department said factory orders fell for the first time in five months, dropping eight-tenths of a percent in August. Orders for durable goods — items intended to last several years (including everything from appliances to airliners) — fell 2.6%, the largest drop since January of this year.

The US government has been spending billions of dollars — part of a $787 billion stimulus package — to help spark economic growth. There have been some signs the economy is improving.

The Commerce Department said on Thursday that spending on home construction jumped in August for its biggest increase in 16 years. A real estate trade group, the National Association of Realtors, said pending sales of previously owned homes rose more than 12 percent in August, compared to August 2008.

A separate Commerce Department report said that consumer spending, which accounts for more than two-thirds of US economic activity, rose at its fastest pace in nearly eight years, jumping 1.3 percent in August.

Other reports have provided cause for concern. A banking industry trade group said Thursday the number of US consumers making late payments, or failing to make payments, on loans and credit cards is on the rise. A survey by a business group, the Institute for Supply Management, Thursday showed US manufacturing grew in September, but at a slower pace than in August when manufacturing increased for the first time in a year and a half.

Stock markets reacted negatively to the reports. The Dow Jones Industrial Average fell 41 points in early trading, reaching a level of 9467. This follows a drop of 203 points on Thursday, its largest loss in a single day since July. The London FTSE index fell 55 points, or 1.1%, to reach 4993 points by 15.00 local time.

Nearly 25% of Iceland’s voters petition for veto of Icesave bill

WcKskV5C | Uncategorized | 08 11th, 2019  |  No Comments »

Sunday, January 3, 2010

Nearly a quarter of Iceland’s voters have signed a petition calling for President Ólafur Ragnar Grímsson to veto the bill passed last week to pay €3.8 billion to the United Kingdom and The Netherlands to compensate depositors impacted when the Icesave online bank collapsed in 2008.

“I consider it to be a reasonable demand that the economic burden placed on the current and future generations of Icelanders, in the form of a state guarantee for Icesave payments to the UK and Dutch governments, be subject to a national referendum,” says the petition.

The petition also demands a referendum be held; any bill not signed by the President must do so under the country’s constitution. This constitutional clause has only once been invoked since the country’s independence from Denmark in 1944. Ólafur challenged a media reform bill in 2004 which the parliament passed by a margin of only two votes. The bill which would have forced the breakup of Baugur Group due to a mix of media and business interests.

The group collecting signatures and who handed over the petition to the President, InDefence, called the bill a “huge risk” for Iceland’s economic future. “All projections based on realistic assumptions […] showed without doubt that Iceland would be unable to meet the payments stipulated by the Icesave loan agreements as set out in the disputed legislation,” it announced in a statement.

Organiser Magnus Arni Skulason made the comparison between repaying the debt and financing Iceland’s health service. “We were able to represent our arguments to the president, and also on the occasion we handed over a petition to ask the president to reject the current Icesave bill,” he said to the BBC. “The interest rate on the Icesave agreement for Iceland is like running the National Health Service of Iceland for six months.”

HAVE YOUR SAY
Should the Icelandic president force the government to consult voters via a referendum on the Icesave deal?
Add or view comments

Magnus expressed preference for the previous legislation from the Icelandic government in August last year. That would have seen the interest paid limited and a time-limit on the period for payment where any outstanding amount would be written off after fifteen years.

Icelandic Prime Minister Jóhanna Sigurðardóttir and her coalition government threatened to resign if the bill was not passed by parliament. It did so by a slim three vote majority: 33 in favour, 30 against. One junior minister has already resigned over the matter.

Icesave was the online service offered by the Landsbanki bank and proposed high interest rates to investors. When it collapsed in October 2008 it had its accounts frozen and had to be rescued, losing 320,000 British and Dutch investors their savings. They were compensated in part by their own governments, which in turn looked to the Icelandic goverment to recompense them. In addition to the Landsbanki, the Glitnir and Kaupthing banks also had to be rescued by the Icelandic government.

The €3.8 billion, to be repaid in installments starting in 2017 over eight years, represents 40% of Iceland’s gross domestic product. Repayment of the debt is an important factor in the country’s application to join the European Union.