New government of Iceland moves to change central bank leadership
Reykjavik - True to its word, the new Icelandic government has called for the three central bank governors to step down, Prime Minister Johanna Sigurdardottir said.
Speaking on a talk show on Icelandic television Monday evening, Sigurdadottir who took office Sunday, said she had sent a letter to the governors asking them to resign.
Sigurdadottir, 66, who heads a minority government between her Social Democratic Alliance and the Left-Green Movement said the government would introduce legislation changing the set-up of the central bank, or Sedlabanki, with only one governor.
A week ago the former government resigned amid mass protests staged since October when the country's three banks Glitnir, Landsbanki and Kaupthing were nationalized in the face of collapsing amid the global credit crunch.
Protesters have also targeted the central bank, and especially central bank governor David Oddsson. The veteran politician served as premier from 1991 to 2004 and also was foreign minister 2004 to 2005 until he was named central bank governor.
On taking office, Sigurdadottir said her main focus will be handling the fall-out from the global financial crisis, which has left the island nation of some 320,000 people near bankruptcy.
The interim government will run the country until early elections are held, likely in April. Although the government lacks an absolute parliamentary majority, it will also rely on the support of the Progressive Party. (dpa)