Central Bank’s Payment of Governor’s Legal Fees Reviewed

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Central Bank’s Payment of Governor’s Legal Fees Reviewed

By Zoë Robert
Már Guðmundsson

Már Guðmundsson. Photo: Geir Ólafsson.

The Governor of Iceland’s Central Bank, Már Guðmundsson, who sued the bank when his salary was lowered in 2009, but lost the case last year, made headlines late last week when it was revealed that the bank paid his legal fees without the knowledge of the governing board. The payment was made based on the decision of the chairman of the board, Lára V. Júlíusdóttir, Morgunblaðið reports.

Már claims the lawsuit was part of establishing the bank’s independence from the government. The new board met on Thursday to discuss whether the payment was appropriate. The board has assigned Alþingi’s Independent Monitoring Body to review the decisions regarding the Central Bank’s payment for the lawsuit in order to see if all rules and regulations were followed.

A result is expected late next week.

By Zoë Robert and Benedikt Jóhannesson. 

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