Iceland indicts ex Baugur CEO

Ben Southwood
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ICELAND’S special prosecutor last night indicted the former chief executives of Baugur Group and Glitnir Bank for their roles in a loan approval, according to reports.

The two ex-bosses, with two other directors at Glitnir, were charged with fraud, Bloomberg reported, due to their involvement in a 6bn krona (£29.3m) loan. According to the special prosecutor, approving this loan to holding company FS38 breached their authority.

The loan was made just three months before Glitnir failed in October 2008, and was used to buy a stake in a swiss jewellery firm.