Cable Viewer

Currently released so far... 12559 / 251,287

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04 2011/05
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/10 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19 2011/03/20 2011/03/21 2011/03/22 2011/03/23 2011/03/24 2011/03/25 2011/03/26 2011/03/27 2011/03/28 2011/03/29 2011/03/30 2011/03/31
2011/04/01 2011/04/02 2011/04/03 2011/04/04 2011/04/05 2011/04/06 2011/04/07 2011/04/08 2011/04/09 2011/04/10 2011/04/11 2011/04/12 2011/04/13 2011/04/14 2011/04/15 2011/04/16 2011/04/17 2011/04/18 2011/04/19 2011/04/20 2011/04/21 2011/04/22 2011/04/23 2011/04/24 2011/04/25 2011/04/26 2011/04/27 2011/04/28 2011/04/29 2011/04/30
2011/05/01 2011/05/02 2011/05/03 2011/05/04 2011/05/05 2011/05/06 2011/05/07 2011/05/08 2011/05/09 2011/05/10 2011/05/11 2011/05/12 2011/05/13

### Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 96 97 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1985/03 1985/06
1986/05
1987/06
1988/01
1989/12
1990/01 1990/07 1990/08 1990/10
1991/05
1992/01 1992/06 1992/12
1993/10
1996/11
1997/12
2000/05 2000/06 2000/09 2000/11
2001/02 2001/03 2001/06 2001/07 2001/09 2001/10 2001/11
2002/01 2002/02 2002/03 2002/04 2002/07 2002/08 2002/09 2002/11
2003/01 2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Apia Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Auckland Consulate Amsterdam Consulate Adana American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belmopan Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chennai Consulate Casablanca Consulate Cape Town Consulate Calgary
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dili Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai
Embassy Freetown Consulate Fukuoka
Embassy Guatemala Embassy Gaborone Consulate Guayaquil Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Ho Chi Minh City Consulate Hermosillo Consulate Hamilton Consulate Hamburg Consulate Halifax
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kingston Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul Consulate Kolkata
Embassy Luxembourg Embassy Luanda Embassy London Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy La Paz Consulate Lahore Consulate Lagos
Mission USOSCE Mission USNATO Mission UNESCO Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maputo Embassy Manila Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Mumbai Consulate Montreal Consulate Monterrey Consulate Milan Consulate Melbourne
Embassy Nicosia Embassy Niamey Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Naples Consulate Naha
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Of Spain Embassy Port Louis Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito Consulate Quebec
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Suva Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate St Petersburg Consulate Shenyang Consulate Shanghai Consulate Sapporo Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Toronto Consulate Tijuana
USUN New York USEU Brussels US Office Almaty US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE Embassy Ulaanbaatar
Embassy Vilnius Embassy Vienna Embassy Vatican Embassy Valletta Consulate Vladivostok Consulate Vancouver
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AR AF ASEC AMBASSADOR AS AJ AM AORC AEMR ASEAN AFFAIRS AFIN AMGT AODE APEC AE ABLD ACBAQ APECO AFSI AFSN AY AO ABUD AG AC APER AU AMED ATRN ADPM ADCO ASIG AL ASUP ARF AUC ASEX AER AVERY AGRICULTURE ACOA AADP ASCH AA AFU AN AID ALOW AINF AMG AIT ANET AGAO AROC ASECKFRDCVISKIRFPHUMSMIGEG AORL AMCHAMS ACS APCS ADANA AECL ACAO AORG AGR ACABQ AGMT AX AMEX ADM AFGHANISTAN AZ AND ARM AQ ATFN
BR BK BL BA BO BRUSSELS BM BEXP BU BG BB BTIO BF BD BBSR BIDEN BX BP BE BH BT BY BILAT BWC BN BMGT BTIU BC
CI CU CO CS CVIS CA CJAN CARICOM CB CASC CE CH CN CONDOLEEZZA CMGT CWC CW CG CACS CY CPAS CFED CSW CIDA CIC CITT CBW CONS CD CLINTON CHR CACM CDB COE CDG CDC CAN CR CF CT CODEL CJUS CTM CM CLMT CBC COUNTERTERRORISM CAPC CAC COUNTER CV CL CBSA CNARC CEUDA COM CROS CIA CARSON COPUOS CTR CICTE COUNTRY CBE CIS CKGR CVR CITEL CLEARANCE
DR DISENGAGEMENT DE DJ DA DOMESTIC DEA DOD DOE DTRA DS DEFENSE DHS DEAX DO DAO DCM DK DPRK DEPT
ECA EU ENRG EPET ETTC ETRD ELN ELAB EC EFIN ECON EFIS ELTN EAGR EIND EWWT EMIN EINV EAID EG EUN ECPS ETRDEINVECINPGOVCS ENGR ENIV ECIN EAIR EI ECUN EFTA ENGY ECONOMICS ES ELECTIONS EN EIAR ET EINDETRD EUR EZ EREL ER ECONEFIN EINT EURN EDU ETRDEINVTINTCS ECIP EFIM EAIDS EK EPA ENVR EINVETC ETRC ENVI ECONCS ECONOMIC EXTERNAL EINVECONSENVCSJA EUMEM ETRA ESA ECINECONCS EAIG ETRO ETRDECONWTOCS EUREM ESENV ETRN ENNP EFINECONCS EEPET ENERG EUC EUNCH EXIM ERD ERNG EINVEFIN ETC EAP ECONOMY EINN EXBS
FAO FR FI FTAA FAC FOI FREEDOM FJ FMLN FARC FDA FTA FBI FM FO FOREIGN FISO FOR FAS FINR FINANCE
GM GG GZ GAZA GR GOI GANGS GV GCC GY GT GA GAERC GOV GE GH GLOBAL GTIP GERARD GTMO GL GF
HK HR HA HURI HO HU HILLARY HUMAN HUMOR HSTC HYMPSK HEBRON HI
IIP IC IR IN IAEA IS IT IMF IBRD IZ IWC ISRAELI INTERPOL IO ISLAMISTS ITALY ITALIAN IRAQI ILO IPR IQ IV IRS INRB ICAO IMO ID IZPREL IRAJ ICTY ICRC IAHRC ITF INR IGAD ILC ITU IF ITPHUM IL INTERNAL ISRAEL IACI ICJ ITRA INMARSAT ICTR IA IEFIN INTELSAT IBET INRA INRO IDP INDO IRC IDA ITPGOV IEA
JA JP JO JAMES JOSEPH JM JUS JOHN JOHNNIE
KPAO KCRM KNNP KCOR KIRF KISL KSCA KDEM KDEMAF KZ KBTR KUNR KMDR KRVC KPAL KTIA KV KJUS KOMC KTFN KWBG KTIP KMPI KSUM KIRC KE KIPR KWMN KFRD KSEP KN KOLY KPKO KIDE KMRS KFLU KSAF KGIC KRAD KU KHLS KOCI KSTH KS KGHG KAWC KICC KG KSPR KPRP KDRG KGIT KVPR KGCC KSEO KMCA KSTC KBIO KHIV KBCT KPAI KICA KTDB KACT KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KHUM KFLO KREC KSEC KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KPIN KCOM KESS KDEV KCFE KNUC KAWK KPLS KWWMN KCIP KPRV KHDP KTEX KFIN KOM KBTS KCRS KNPP KWNM KRFD KVIR KLIG KMIG KDDG KRGY KFSC KR KMOC KPAONZ KNAR KIFR KCGC KID KSAC KAID KNSD KWMNCS KCMR KO KNEI KPOA KTER KOMS KPAK KTBT KWMM KWAC KHSA KX KMFO KPWR KRIM KSCI KVRP KENV KCRCM KNUP KNNPMNUC KERG KTLA KCSY KTRD KJUST KRCM KCFC KCHG KREL KFTFN
LY LTTE LE LH LO LI LG LT LU LABOR LA LAB LOG
MARR MX MOPS MNUC MZ MASS MEETINGS MG MW MIL MTCRE MCAP MAS MO MTCR MD MK MP MY MR MT MCC MIK MU ML MARAD MA MAPS MV MERCOSUR MASC MPOS MILITARY MDC MQADHAFI MEPP MRCRE MEDIA MAPP MTRE MEPN MI MC MUCN MAR MASSMNUC MOPPS MTS MLS MILI MEPI
NATO NL NZ NI NU NO NPT NRR NA NATIONAL NIPP NAFTA NT NS NE NASA NSF NP NAR NV NORAD NG NSSP NW NK NDP NR NATOPREL NEW NPA NPG NSG NSFO NGO NSC NH NZUS NC
OFDA OTRA OPRC OIIP OAS OPDC OVIP OEXC OPIC OSCE OPCW OREP OFFICIALS ODIP OECD OMIG OFDP OBSP OIE OSCI OES OPAD OVP OHUM OIC ON OCII OCS OTR OSAC
PREL PGOV PINR PTER PARM PHUM PA PBTS PINS PM PREF PHSA PK POL PL PE PFOR PALESTINIAN PUNE PGOVLO PAO POLITICS PO PHUMBA PSEPC PNAT PNR PROP POLINT PGOVE PROG PHALANAGE PARTY PDEM PECON PROV PSOE PU POGOV PMIL PINL PHUMPREL PGIV PBT PAK PP PGOC PY PLN PMAR PHUH PBIO PF PRL PG PHUS PTBS PRAM POV PEL PAS POLICY PGGV POLITICAL PARTIES PCUL PSA PDOV PCI PREO PAHO PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PHUMPGOV PREFA PSI PAIGH POSTS PARMS PTERE PRGOV PORG PS PGOF PKFK PEPR PPA PINT PRELP PINF PNG
QA
RU RS RICE RW RCMP RO RFE RP RIGHTS RIGHTSPOLMIL ROBERT REGION RUPREL RF RELATIONS RM REACTION ROOD REPORT RSO RSP
SNAR SENV SOCI SCUL SY SR SU SO SP SA SZ SF SMIG SW SIPDIS STEINBERG SN SNARIZ SG SNARN SSA SK SI SPCVIS SOFA SC SL SARS SNARCS SIPRS SYR SANC SEVN SWE SHI SEN SHUM SYRIA SH SPCE SAARC SCRS SENVKGHG SAN ST
TW TRGY TU TPHY TBIO TX TN TSPL TC TZ TSPA TS TF TI TIP TH TINT TNGD TP TD TFIN TAGS TK TL TV TT TERRORISM TR THPY TO TRSY TURKEY TBID
UK UP US UNSC UNHCR USEU UNGA UG UY UNESCO UN USTR USOAS UZ UNODC UNCHS UNFICYP UNEP UNIDROIT UNHRC UNDESCO UNMIK UNDP UNC UNO UNAUS UV UNICEF UNCHR UNDC UNCHC UNPUOS USUN USNC UNCSD UNCND USPS USAID UE UNVIE UAE
VM VE VZ VT VN VTPREL VTIZ VAT VC VTEG VI
WITH WI WHO WTRO WIPO WTO WS WTRQ WWARD WHTI WEU WZ WHA WMD WMO WA WBG WFP WB
XF XG XT XK XM XR XZ XA XV XL XH XE XB XU XW XQ XS XX XY XD XC XI XTAG
YM YI YMCS YE
ZP ZR ZB ZI ZA ZK ZU ZOELLICK ZF ZO ZANU ZEALAND ZL ZJ ZN

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 09REYKJAVIK58, ICELAND SCENESTTER FOR TREASURY DAS ERIC MEYER'S VISIT

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09REYKJAVIK58.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09REYKJAVIK58 | 2009-03-18 17:27 | 2011-01-13 05:37 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Reykjavik

`

    VZCZCXRO3076
    PP RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
    RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG
    DE RUEHRK #0058/01 0771727
    ZNR UUUUU ZZH
    P 181727Z MAR 09
    FM AMEMBASSY REYKJAVIK
    TO RUEHC/SECSTATE WASHDC PRIORITY 4028
    RUEATRS/DEPT OF TREASURY WASHINGTON DC
    INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

` `

    UNCLAS SECTION 01 OF 02 REYKJAVIK 000058

    STATE FOR EUR/NB
    TREASURY FOR ERIC MEYER AND LARRY NORTON

    SIPDIS

    SENSITIVE

    E.O. 12958:  N/A
    TAGS: PGOV ECON EFIN IC
    SUBJECT:  ICELAND SCENESTTER FOR TREASURY DAS ERIC MEYER'S VISIT

    ¶1. (SBU) Summary:  Since your previous visit three months ago,
    you'll find many changes in Iceland's economic and political
    landscape.  Businesses are hurting and unemployment has risen to an
    unprecedented ten percent.  Currency restrictions imposed in
    December were extended another six months until September 1.  News
    is not good on aluminum and fish, the two export-oriented pillars
    that are helping to prop up the ISK.  Following the escalating
    protests in January, the government fell and a leftist coalition was
    established.  Consequently, you'll be meeting a few new faces at the
    Ministries of Finance and Business Affairs and the Central Bank.  As
    the IMF team found during their recent visit, the political turmoil
    has delayed dealing with crucial issues like resolving IceSave
    account guarantees.  Pressure is rising on the Central Bank to lower
    interest rates, while the public's desire for EU membership and Euro
    adoption has deflated somewhat, with only the business community
    strongly advocating this move.  The parties in the interim coalition
    government are acting cautiously, knowing their actions today
    directly affect whether they will be elected in general elections
    slated for April 25.  The vital question of how the Icelandic
    economy will adapt to the new global economic realities remains
    unclear.  End Summary.

    ¶2. (SBU) The economic situation in Iceland has visibly deteriorated
    since December.  Unemployment is currently at 10.3 percent, a
    dramatic rise from under two percent just five months ago.  When you
    were last in Iceland, there were anecdotal claims that up to 70
    percent of businesses were technically insolvent because the
    depreciating ISK had ballooned their foreign currency loan payments.
     That has proven to be the case.  In addition to vacant construction
    sites with half-finished projects, a walk down the main shopping
    street in Reykjavik reveals newly vacant storefronts from failed
    businesses or desperate posters for final sales.  Other signs of the
    hard times include Baugur, one of the biggest holding companies in
    Iceland, declaring bankruptcy and the Financial Supervisory
    Authority's takeover of investment bank Straumur-Burdaras on March
    ¶9.  The temporary capital controls that expired March 1 were
    extended an additional six months.  The ISK is being helped by a
    small trade surplus, although the two main pillars for exports,
    aluminum and fish, have suffered in the global downturn.  Worldwide
    aluminum demand has dropped, and the resulting price decreases have
    slowed production at the country's smelters.  The reduced demand for
    fish has fisherman storing their catch; we hear reports that the
    freezer capacity is nearly maxed out.

    ¶3. (SBU) The public discontent over the economic situation and the
    government's apparent lack of action led to a series of escalating
    public protests.  As a result, the centrist government fell in
    January, and a leftist interim coalition was put in place.  The most
    relevant Cabinet changes to your visit are the new Minister (and
    Permanent Secretary) at the Ministry of Finance, a new Minister of
    Business Affairs, and a new Prime Minister.  Minister of Business
    Affairs Gylfi Magnusson, whom you will meet, is a non-political
    academic educated at Yale.  Upon installation of the new government,
    the Central Bank leadership structure was changed which resulted in
    the hire of a Norwegian interim Bank Director.  The Board at the
    Financial Supervisory Authority was also changed, with another
    academic appointed as Chair.

    ¶4. (SBU) As the IMF team found during their two-week visit that
    ended last week, the political turmoil has delayed dealing with
    crucial issues like resolving the dispute with the UK and other EU
    countries over deposit guarantees for the IceSave accounts.  The
    interim coalition is acting cautiously, knowing their actions today
    and the public perception of those actions will directly affect the
    outcome of the April 25 general elections.  Inconclusive public
    opinion polls have given the parties little ground to feel
    confident, and they are watching every move carefully.  As an
    example, one of the first acts of the new Minister of Health was to
    reverse the unpopular cost-cutting decision of his predecessor to
    close a small hospital, despite the fact that his Ministry is under
    the gun to make nearly ISK 7 billion ($60 million) in budget cuts.
    There is pressure on the Central Bank to lower the prime index rate.
     However, public calls to join the EU and adopt the Euro are not as
    intense as in October.  Only the business sector continues to
    advocate this position; the latest poll indicated 54.5 percent of
    the general public were against joining the EU.

    ¶5. (SBU) The change in government has also loosened tongues and
    you'll find many interlocutors are offering details of the situation
    leading up to the banks collapse.   The government was criticized
    for not investigating criminal activities within the banks and the
    international corporations, and as a response French-Norwegian
    anti-corruption crusader Eva Joly has been hired as a special
    government consultant for the investigation of economic crimes.
    Mysterious leaks to the media of the banks' loan books are revealing
    that the banks' owners were manipulating their stock prices and that
    the quality of loans (previously touted as sound) deteriorated

    REYKJAVIK 00000058  002 OF 002

    before the collapse.

    ¶6. (SBU) Comment:  Installing new experts in key positions such as
    the Central Bank, the Financial Supervisory Authority and some
    ministries, is positive and will provide needed expertise.  However,
    given that the interim government is acutely aware of the impending
    April 25 general elections, it is unclear how much progress will be
    made before a new government is installed.  The vital question of
    how the Icelandic economy will adapt to the new global economic
    realities remains unclear.  End Comment.

    VAN VOORST

`