Iceland ex-PM Haarde to go on trial over 2008 crisis
LONDON. March 5. KAZINFORM Former Icelandic Prime Minister Geir Haarde is to go on trial at a special court on charges of negligence in his handling of the 2008 financial crisis, Kazinform has learned from BBC.
The country's three main banks collapsed during economic turmoil.
The failure of Icesave, which hit thousands of savers in the UK and Netherlands, led to a dispute over compensation, which remains unresolved.
Mr Haarde rejects the charges as "political persecution", saying he would be vindicated during the trial.
The proceedings will be held at the Landsdomur court, a special body to try cabinet ministers, which has never before heard a case.
Some Icelanders see the trial of Mr Haarde as scapegoating, while others argue that public accountability is essential following the country's financial collapse.
'Bullying'
Iceland was plunged into a deep recession following the collapse of its three banks, including Icesave's parent company Landsbanki, in autumn 2008.
Mr Haarde, 60, led the Independence Party government at the time.
He is accused of being negligent because he had not ensured financial safeguards were in place.
The former premier says he was only doing what he thought was best for the country at the time.
When Icesave collapsed, the then UK Prime Minster Gordon Brown accused his Icelandic counterpart of "unacceptable" and "illegal" behaviour after Iceland said it could not give a guarantee to reimburse UK customers of the online bank.
In response, Mr Haarde accused the UK government of "bullying" and bringing down one of its other banks after the Treasury froze the assets of Icelandic institutions in the UK.