PM blackmail: bank loan accusations

Sigmundur Davíð Gunnlaugsson PM.

Sigmundur Davíð Gunnlaugsson PM. Photo: Ómar Óskarsson

Rumours now suggest that the blackmail letter sent to Iceland’s Prime Minister last week contained allegations of his involvement in securing a bank loan for an Icelandic news website.

Unnamed sources have told Icelandic news provider Vísir that the blackmailers threatened Icelandic Prime Minister, Sigmundur Davíð Gunnlaugsson, with making public certain documents proving his involvement in securing a loan from Icelandic bank MP Banki for the news website Pressan after his election as PM in 2013. The original Vísir article (in Icelandic) can be seen here.

Prime Minister Gunnlaugsson has so far been unavailable for comment regarding these latest allegations. Arnar Ægisson, Managing Director at Pressan, has denied any involvement of the PM in securing the loan in question.

MP Banki has issued a more tight-lipped statement regarding the allegations.

MP Banki representatives have not seen the letter and do not know what accusations it contains,” the statement reads. “Confidentiality cannot be broken in respect of any individual client or transaction. We can, however, state categorically that MP Banki has at all times acted in full accordance with all legislation governing financial institutions.”

“[The family connection between the CEO of MP Banki and the Prime Minister] in no way influences the work of the bank.”

Sigurður Atli Jónsson, CEO of MP Banki, married to the Prime Minister’s sister, and Sigurður Hannesson, Director of Asset Management at the bank is one of his closest financial advisers.

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