Officials in Iceland are to investigate charges by a former official of the Dutch central bank that Iceland lied to the Netherlands about the situation surrounding internet bank Icesave.

Icesave, which offered very generous interest rates, collapsed in 2008, leaving thousands of Dutch savers out of pocket.
On Monday, former central bank director Arnold Schilder told the De Wit commission investigating the economic crisis, that he had raised potential problems with Icesave’s parent company Landsbanki several times.
‘I can say nothing else other than that the Icelandic collegues lied to us,’ he said. We made several urgent inquiries but were always given the same ‘hallelujah story’ that there was nothing wrong, even in August and September, he told the committee.
The Netherlands and Britain lent Iceland a total €3.8bn to pay back savers. The people of Iceland are now to hold a referendum on plans to pay back that money, which many say will cripple the island’s economy for years to come.
For Schilder’s statement, click here (Dutch)