EVE Search - Iceland Bankrupt!

All Channels

Out of Pod Experience

Iceland Bankrupt!

» Click here to find additional results for this topic using Google

Monitor this thread via RSS [?]

Pages: [1] :: one page
Author	Thread Statistics \| Show CCP posts - 0 post(s)
Mr mOnKeYbAlZ	Posted - 2008.10.07 19:02:00 - [1] Just saw on the news that Iceland government has taken control of ALL the countries banks. Icelandic government only guaranteeÆs ú16,000 of savings so many people are going to loose a lot of money. How might this effect CCP, have they lost all their isk to the financial crisis?
ReaperOfSly Gallente Zetsubou Corp	Posted - 2008.10.07 19:05:00 - [2] Yeah, it sounds like they're in a good deal of poo over there. They've frozen people's savings, thus severely reducing the liquidity of all businesses there. This can't be good.
Joseph 9 Deep Core Mining Inc.	Posted - 2008.10.07 19:05:00 - [3] The guarantee on savings only comes into effect if the bank actually fails, which the Icelandic government is attempting to prevent via it's nationalisation. So CCP should be fine for now. If the banks actually start failing things could get messy however.
Mr mOnKeYbAlZ	Posted - 2008.10.07 19:11:00 - [4] Surely this means that CCP's bank assets and any short term loans have been frozen? I donÆt know if business sector is affected the same as the domestic sector as a friend of mine has savings in an Icelandic bank, he has been unable to withdraw any money and has been told to file a claim for compensation.
Micheal Dietrich Caldari Terradyne Networks	Posted - 2008.10.07 19:14:00 - [5] Seriously people, how many copies of the same thread do we need?
Pwett Minmatar QUANT Corp. QUANT Hegemony	Posted - 2008.10.07 19:21:00 - [6] 23 is the sweet spot. _______________ Pwett CEO, Founder, & Executor <Q> QUANT Hegemony
Vak'ran	Posted - 2008.10.07 20:22:00 - [7] Edited by: Vak''ran on 07/10/2008 20:22:10 Is it so hard to, after >10 panic threads on the subject, maintain in one's head the statement that went along the lines of: 'CCP operates mainly on foreign currencies and is in little trouble, apart from the poor sods slaving away for us getting paid in ISK'
Deviana Sevidon Gallente Panta-Rhei United Front Alliance	Posted - 2008.10.07 20:44:00 - [8] CCP invested a lot of money into Hardware upgrades lately and their employees want to be paid. If the banks cancel CCP the credit because they need the money to pay their own debts, then CCP, while technically being a healthy company, might have to declare their own insolvency. It is highly complicated situation and I am no expert on the subject, but things do not look well for the icelandic economy.
Vak'ran	Posted - 2008.10.07 20:47:00 - [9] Edited by: Vak''ran on 07/10/2008 20:47:47 Originally by: Deviana Sevidon CCP invested a lot of money into Hardware upgrades lately and their employees want to be paid. If the banks cancel CCP the credit because they need the money to pay their own debts, then CCP, while technically being a healthy company, might have to declare their own insolvency. It is highly complicated situation and I am no expert on the subject, but things do not look well for the icelandic economy. /me hangs his head You dont have to be a bloody expert, just read what CCP's response has been to these stories. I'm no expert either but i am starting to get the feeling threads like these represent the same kind of uninformed media outbursts that cause a big part of the global panic.
TU144 TEPPOPNCT'CMEPTHNK	Posted - 2008.10.07 21:48:00 - [10] Players 2 the rescue i know, lets all buy GTC's ;p as quick cash flow boost to CCP :) yes i know its short term fix, but short of selling shares to players direct, its the best i could think of
Carinzia	Posted - 2008.10.07 21:53:00 - [11] Even though people are paying CCP in Dollars and Euros, It is still an Icelandic business with mainly Icelandic employees. I seriously doubt that CCP would not have any exposure to the banking crisis so far. After all, if you're in business you need a bank account, and when the bank freezes or cannot guarantee your money, you're in trouble. How are you going to pay your employees, suppliers, 3rd party creditors, and owners/shareholders? What Iceland is experiencing here is similar to the Asian financial crisis back in 1997, That is the complete loss of confidence and the flight of capital from perceived high risk countries, leading to the collapse of financial institutions and the local currencies. The Icelandic banks had grown completely out of proportion of the Icelandic economy (Remember Iceland only have 300,000 people, about the size of a small regional city) and all of them teethering on insolvency. Currently their foreign debt portfolio is about 12 times the size of the Icelandic economy. What nationalisation does is to delay the insolvencies so that the banks can 'weather the storm', but if the storm lasts well into 2009, all bets are off. Most account holders with more than the guaranteed limit (CCP?) may well lose them all, and even those who are guaranteed may lose most of their savings because of bank freezes and the devaluation of the Krona, and they will probably get worthless pieces of paper. If Iceland don't receive any aid from the EU/IMF/World Bank soon, (IMO the 4 Billion loan from Russia won't cut it) and market confidence continue to worsen across the world into 2009, here's what could happen: 1) The nationalised banks freezes all accounts, the economy grinds to halt as businesses can't get loans or refinance them. 2) Iceland defaults on its soverign debt, a la Argentina. 3) The Krona collapses in value, maybe up to 70-80% against the Euro/USD (They already lost 30% to the dollar during the past month) All of this will seriously affect CCP or any other Icelandic business.
Baldour Ngarr Interwarp Plexus Controlled Chaos	Posted - 2008.10.07 21:57:00 - [12] Originally by: Carinzia 1) The nationalised banks freezes all accounts, the economy grinds to halt as businesses can't get loans or refinance them. They might well freeze all savings, but they would be extremely reluctant to freeze business accounts and assets, for exactly this reason. Quote: 2) Iceland defaults on its soverign debt, a la Argentina. 3) The Krona collapses in value, maybe up to 70-80% against the Euro/USD (They already lost 30% to the dollar during the past month) All of this will seriously affect CCP . Yes it would - for the better. CCP gets paid in dollars and euros, so if they Icelandic Krona collapses in value it means their earnings translate into vastly higher amounts of ISK. ________________________________________________ "I tried strip mining, but I lost, and it's cold flying around in space naked."
Fink Angel Caldari The Merry Men	Posted - 2008.10.07 21:58:00 - [13] OMG they will need to sell your characters to farmers and haxxors to make ends meet. And the Jita server will have to be pawned. More seriously there's nothing to worry about. CCP can just spawn some more ISK whenever they want, or at worst pay their bills with GTCs. Isn't that how it works when you're out of cash?
Malcanis RuffRyders Axiom Empire	Posted - 2008.10.07 22:04:00 - [14] Originally by: Deviana Sevidon CCP invested a lot of money into Hardware upgrades lately and their employees want to be paid. If the banks cancel CCP the credit because they need the money to pay their own debts, then CCP, while technically being a healthy company, might have to declare their own insolvency. It is highly complicated situation and I am no expert on the subject, but things do not look well for the icelandic economy. Given that CCP have considerable hard currency income, and can easily reduce their outgoings, I'd say that they could easily secure new credit.
Ademaro Imre Caldari Intrepid Crossing	Posted - 2008.10.07 22:31:00 - [15] So, is this the first thread about Iceland that does not involve Fanfest or some high living standard ranking?
Carinzia	Posted - 2008.10.07 22:32:00 - [16] Edited by: Carinzia on 07/10/2008 22:34:02 Edited by: Carinzia on 07/10/2008 22:33:32 Quote: Yes it would - for the better. CCP gets paid in dollars and euros, so if they Icelandic Krona collapses in value it means their earnings translate into vastly higher amounts of ISK. The sword cuts both ways. Indeed devaluation generally helps exporters who earn hard foreign currency (Imagine CCP is an exporter of gaming services) As their operating costs are devalued as well. Extreme devaluation, however, can have negative effects on exporters, e.g. sprialing inflation and possible government taxes/tariffs on exporters to shore up their own accounts. The reason why Argentina's farm exporters are still in the wilderness because their govt doubled the export tariff. Of course the average Icelandic citizen will be hardest hit, their living standards will fall off a cliff. Quote: They might well freeze all savings, but they would be extremely reluctant to freeze business accounts and assets, for exactly this reason. No one knows what will happen if the IMF/EU/World bank don't come to Iceland's rescue soon.

Pages: [1] :: one page
First page \| Previous page \| Next page \| Last page

COPYRIGHT NOTICE
EVE Online, the EVE logo, EVE and all associated logos and designs are the intellectual property of CCP hf. All artwork, screenshots, characters, vehicles, storylines, world facts or other recognizable features of the intellectual property relating to these trademarks are likewise the intellectual property of CCP hf. EVE Online and the EVE logo are the registered trademarks of CCP hf. All rights are reserved worldwide. All other trademarks are the property of their respective owners. CCP hf. has granted permission to EVE-Search.com to use EVE Online and all associated logos and designs for promotional and information purposes on its website but does not endorse, and is not in any way affiliated with, EVE-Search.com. CCP is in no way responsible for the content on or functioning of this website, nor can it be liable for any damage arising from the use of this website.