Daclec Tiðændjar - 2017

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Disagreement on Pálssœn’s policy of austerity

November, 2017 – Daclec Tidændjar sought Mr Luc Pálssœn at his home in Grœnfjœrðor for an interview. As Yuklandic Prime Minister in 2012, Mr Pálssœn was one of the articulators for bringing FICT back to life after the disastrous meeting of that year and the idealiser of FESD, the FICT Fund for Economic and Social Development, now called FSIB. Chosen as its director in May 2016, this shy 49-year-old gentleman was accused, during the last General Assembly of FICT, of misconducting the bank, a scandal according to some delegations and sectors of the international press.

Calmly, he explained: “There has been a big misunderstanding about the role of FSIB. The institution was created to finance development projects and to help member states in case of emergency, and it is operating to this purpose since then. The emergency fund provided aid, for example, after the Tarmoryan civil war in 2012 and the Kaupelanese earthquake of 2013. The financing fund also operates by loaning money at very low interest rate to several social projects. In the FICT General Assembly of 2014, a change in the yearly contribution to the institution was approved and the fund stopped to increase continually as before.”

“Since last year when I became director of FSIB, I’ve emphasised the rigid control for funding projects, like any financing institution in the world do, restricting them to proven investments in social areas to avoid misuse of the low-rate loans. This was done as a respect to the contribution of the member states. In my speech to the Assembly I said that, since last year, there was no request for funding that fulfilled the requirements. Simple like that” Mr Pálssœn explained.

“One could argue that the bank should offer money to member governments instead of waiting for their requests, but we would not decide upon this without an approved direction from the GA. That was always my understanding”, the former director completed.

Asked about the countries that threaten to suspend their contribution to FSIB, he poked “this shows a complete lack of knowledge of how the process works nowadays. Since 2014, no contribution has been made to increase the fund, only to pay the maintenance of the institutes and of FICT itself.”

About reconsidering his resignation, Mr Pálssœn was emphatic “never”.

The director of FSIB resigns

November, 2017 - Immediately after the FICT General Assembly in Port Amargo last Sunday, November 19, the director of FICT Social Investment Bank (FSIB), Luc Pálssœn, sent a letter of resignation to FICT Secretary General, Ms Shonshuu. His presentation to the assembly about the situation of the bank caused a lot of protests stating that the bank had deviated from its original purpose. The discussion culminated with the approval of an investigation of FSIB and of Mr Pálssœn himself. “We considered this investigation an absurd”, PM Blœmagarð said to the press. “Mr Pálssœn always conducted FSIB strictly according to the direction and purposes given by FICT and has a public life above any suspicion.”

The resigned director – and former Prime Minister (2009-2012) – declared to the press that “the loans, at very low interest rates, were to be authorised exclusively for social investments, not for other purposes such as covering public deficits, paying debts or political campaigns. No social projects were submitted to FSIB since I had assumed as director last year. So, our policy has been to invest the money in international banks to make it grow and be more beneficial for the member states, especially after the significant reduction in the revenues, when the rules of contribution to FSIB – at that time called FESD – changed in 2014.”

Helga Blœmagarð stated that “FICT should review its policies and priorities for the institutes instead of accusing the conduct of a man with a vast reputation and good services in his public life”. During the General Assembly, Yukland voted against all the investigations proposed.

Blœmagarð is the new premier

February, 2017 - After having the number of seats in the Ðiggshus reduced from 17 to 9 in the last parliamentary election, The Social-Democrat Party (LHD) had to include the Workers Party (VH) in the coalition LHD-LH to obtain absolute majority of votes and form the new government. Nevertheless, Helga Blœmagarð of the Socialist Party (LH) was chosen as prime minister in the place of Rœslin Óstfjœrd, putting end to 26 years of LHD hegemony.

The feeble electoral result of LHD is attributed to the poor performance of Yuklandic economy last year, figures indicating a GDP growth of only 1.15% and an increase in the unemployment rate from 3.5% to 4.6%. Revert this scenario will be a big challenge for the new government, especially if we consider the pressure of the traditional opposition Parties, ÐH and ÐRH, which together had a growth from 7 to 12 seats.

One of the initial tests for the new government will be the organisation of the next FICT General Assembly in Vítgarð, in May, almost five years after the famous summit where the Ísðor Treaty was proposed.