| Deloitte: The depreciation method makes no sense |
| Saturday, 06 June 2009 20:58 |
 The bank system will collapse again and nearly all of the currently operating fisheries will be bankrupt within five years if the depreciation method of the government is to be taken, in the opinion of the chairman of the accounting company Deloitte. The company has finished a report for the National association of Icelandic fishing vessel owners about the depreciation method, which the chairman says makes no sense. The depreciation method which the government has announced to shuffle up in the quota system is about calling in 5% of all of the quotas annually for the next 20 years. Most of the ship owners have declared that the depreciation method will force their companies into bankruptcy in only a few years. The association of Icelandic fisheries hired Deloitte to calculate the affects of this method. The newsroom was allowed to take a look at the draft of the report of Deloitte. There it says that the debts of the fisheries have increased less than for other companies in Iceland for the past few years. Thorvardur Gunnarsson chairman of Deloitte says that there are overwhelming chances of that nearly all of the operating fisheries will end up bankrupt within five years if the government decided to enforce this method. Thos who have been promoting this method have amongst other said that the operations of the fisheries are in excellent condition at this time, but what is pulling them down are the bets against the króna and the leveraging of the inflated quota. That part of the fishing industry is bankrupt and was needed to be put into bankruptcy. But if that will be done said the chairman of Deloitte that there are close to 400 billion króna debts going to fall on the Icelandic government banks. The bank system will not be able to handle that, and would cause another collapse of the banks.
News Article by Lóa Pind Aldisardottir Translated by Anya Original Article in Icelandic
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