The report quoted fisheries minister Jon Bjarnason as saying mortgaging quota in this way is illegal, as the law requires fishing rights should not fall into the ownership of anyone other than Icelandic citizens.
Bjarnason is demanding an explanation from the directors of the failed bank, the station reported Monday.
The mortgages puts these quotas into the ownership of the Luxembourg Central Bank, and are likely to be sold to the highest bidder if it is not possible to refinance the mortgage.
Visir
