Irresponsible handling of money to pay back the loan

DV.is reports that Bjarni Ármannsson the former CEO of Glitnir just made a deal with the Glitnir solvency committee, to write off just over 800 million ISK debt belonging to him and his company. Bjarni Ármannsson used the money to buy shares in a Scandinavian real estate holding company.

The solvency committee too the company over and sold it with a hefty loss. The company in question is called Imagine Investments. According to DV, the loan has not been written off yet, but the loan was taken in late 2007 after he quit as CEO, but seems to have easy access to very big loans with hardly any collateral, just the shares themselves. He got the loan to buy 12% share in Glitnir Property Holding for 970 million ISK. 714 million of that money came from Glitnir as a loan.

This loan went through a holding company so he is not personally responsible for the loan, that is like in so many cases of the Icelandic banks, that was given with only the shares themselves as a collateral. The funny thing is that Glitnir solvency committee took over Glitnir Property Holding, that Glitnir bank already owned 50% off.

According to Bjarni Ármansson himself, he is refusing to tell how much he had to pay back, but it is believed that of the 970 million, around 800 plus will be written off.

When he sold his shares in Glitnir bank when he left as CEO it is believed that he got around 7 billion ISK for the shares. Plus that, he got a very very very nice end of contract payment from the bank.

This might seem unfair that he does not have to pay, but as a reply to that statement Bjarni Ármansson said that it would be a very irresponsible handling of his funds to pay back the loan.

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