"I reject all accusations, and believe there is no basis for them," Geir Haarde said as he took the stand on Monday.
Haarde became a symbol of the bubble economy for Icelanders who lost their jobs and homes after the country's main commercial banks collapsed in 2008, sending its currency into a nosedive and inflation soaring.
Prosecutors opened the case at a special court being convened for the first time in Iceland's history. Part of their case hinges on a charge that Haarde failed to implement recommendations a government committee had drawn up in 2006 to strengthen Iceland's economy.
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