30-Mar-2016: Liquidators' Update, see Deloitte site

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Thousands of Icelanders Demand Referendum on Icesave

Representatives of the website, where more than 8,500 people have signed a petition demanding a referendum on the Icesave legislation passed by parliament on Friday, will formally hand the petition over to President Ólafur Ragnar Grímsson today.

In the petition, the president is challenged to enforce a referendum by vetoing the legislation, Fréttabladid reports.  31-Aug-09.

New Kaupthing and Islandsbanki recapitalisation announced

Further to the announcement of 20 July 2009 and following shareholder meetings of Islandsbanki and New Kaupthing today, the Government of Iceland is pleased to announce that it has committed to capitalise Islandsbanki and New Kaupthing on the basis of compensation agreements which are in the process of being finalised with the Resolution Committees of Glitnir and Kaupthing. . .

In relation to Landsbanki, the Government and the Resolution Committee of Old Landsbanki have agreed to seek a short extension from the FME in order to reach final agreement on capitalisation and compensation arrangements. Negotiations between the two parties continue in a satisfactory manner.  14-Aug-09.

Iceland agonises over compensation deal

REYKJAVIK — Iceland's government is battling to convince lawmakers to approve a deal to pay back billions of euros to the British and Dutch governments in a row which threatens its bid to join the EU.

After London and The Hague compensated hundreds of thousands of British and Dutch savers who lost money in the collapse of the online bank Icesave, Reykjavik reached an agreement in June under which Iceland would repay 3.8 billion euros to Britain and the Netherlands by 2023.

The Icelandic parliament, the Althing, has to give its green light for the deal to go through, but amid heated debate the government may struggle to obtain the majority needed.

The accord is highly unpopular among the public and several members of the left-wing majority have threatened to side with the opposition to thwart the deal.  11-Aug-09.


Economic Committee Wants Disclaimers on Icesave

The Economic and Tax Committee of the Icelandic parliament, Althingi, is likely to introduce two disclaimers to the Icesave agreement: that the maximum payment for each savings account will not exceed EUR 20,887 (USD 30,099) and that Iceland will not repay the Icesave loans any longer than until 2024.

According to Morgunbladid, these disclaimers could lead to a new agreement. It is considered unlikely that the contracting parties, British and Dutch authorities, agree to provide loans to the Icelandic Depositors’ and Investors’ Guarantee Fund if the state guarantee will be so limited.  06-Aug-09.

How could a handful of men in Reykjavik supervise a powerful City bank?

The UK and the Netherlands are concerned by the failure of Icelandic banks Kaupthing, Glitnir and Landsbanki because they had welcomed their subsidiaries and branches with open arms, even though their authorities had been at least partially alerted to the risks hanging over those banks. The two countries are now demanding that Iceland pay them astronomical sums (more than €2.7bn (£2.3bn) to the UK and over €1.3bn to the Netherlands, plus interest at 5.5pc in compensation.. .

But British Prime Minister Gordon Brown is wrong when he says that he and his government have no responsibility in the matter. First, he has a moral responsibility, having been one of the main proponents of this model which we can now see has gone up the spout. Second, he cannot say that the UK had neither the means nor the legitimacy to supervise Icesave's activities.  [Article by Eva Joly - a French judge acting as special adviser to the Icelandic government on criminal investigations into its banks] 02-Aug-09.

Netherlands threatens Iceland's EU bid over lost savings

To put pressure on Iceland to meet agreements about compensation for Dutch savers who lost money in the Icesave bankruptcy, Dutch foreign minister Maxime Verhagen told his Icelandic counterpart that he could block its bid to join the European Union.

Verhagen called Ossur Skarphédisson on Tuesday evening to talk about the stalemate in the Icesave repayment. The Icelandic parliament, the Althing, has postponed a decision on the reimbursement agreement made by the government for Dutch and British victims of the Icesave debacle. A total of 128,000 Dutch savers had some 1.7 billion euros in accounts in this web-based subsidiary of the Landsbanki bank, which was nationalised by the Icelandic government in October 2008.. .

In a reaction, Skarphédisson called Verhagen's remarks "an internal Dutch political issue". Iceland's finance minister Steingrímur Sigfússon said there can be no connection between the Icesave agreement and admission to the European Union.  NRC Handelsblad Netherlands website - 09-Jul-09.


KSF: 75 per cent to get all cash by September

THREE quarters of all Kaupthing Singer and Friedlander Isle of Man depositors will be paid back in full by the end of September. . .

Treasury Minister Allan Bell MHK said the DCS payments would be paid to about 5,000 to 6,000 eligible account holders 'as soon as possible'.
'We will have paid over 75 per cent of depositors by the end of September,' he said. . .

'If the Isle of Man stood by and did nothing, that would be irresponsible. It's a short-term loan and ultimately we will get the bulk of this money returned to reserves. How fortunate we are in building up reserves over the past few years. Who would have predicted the set of circumstances that brought about this collapse?'

He insisted the government had a 'sincere desire' to help the depositors. 'We do understand the personal tragedies the collapse has caused. We have done our utmost,' he told Tynwald.

Mr Bell said that with the bank now in liquidation, the government could now move on to the next stage and support an inquiry into bank's collapse. 21-Jul-09.

New Government Agreement regarding Icelandic Banks

The government introduced an agreement with the bank’s resolution committee at a press conference today which was held in the National Theatre in the capital city of Reykjavik. Bank obligees will discuss the new agreement but hopes are rather high that they will accept this agreement.

Foreign obligees would accept to own a big portion of Islandsbanki and Kaupthing banks, however the government of Iceland will still run Landsbanki. The Old Landsbanki, as called in Icelandic Gamli Landsbankinn, is however owned by the British and Dutch governments.

If the banks are owned by foreign companies, this also means that the banks can again participate directly in the international financial market, rather than being government owned. The government stated today at the press conference that this is a big step in fixing and moving forward for Iceland’s economy.  20-Jul-09.

Jersey legislators back bank compensation scheme

Jersey has moved a step closer to introducing a depositors’ compensation scheme after its legislators voted ‘in principal’ for the measure. . .

The likely introduction of the scheme follows the collapse last year of Icelandic banks Kaupthing and Landsbanki, which respectively had subsidiaries in the Isle of Man and Guernsey holding many millions of pounds.

While the Isle of Man had a depositor compensation scheme, Guernsey did not, meaning savers in Landsbanki Guernsey have no guaranteed right of receiving any of their money back.

Guernsey has since implemented a scheme, though it is not retrospective and therefore does not cover Landsbanki depositors.   International Adviser website - 17-Jul-09.

Jersey Depositor Compensation Scheme Approved

The States Assembly has approved the principle that a Depositor Compensation Scheme (DCS) will be brought into law in Jersey.

The House voted unanimously for the principle of a permanent, standalone DCS that will be activated in the unlikely event that a Jersey-registered bank failed. The aim of the scheme is to provide depositors with compensation quickly, minimising hardship by enabling depositors to carry on with their everyday economic activities.

It will provide full protection for private individuals up to a maximum of £50,000 per person, per Jersey banking group, whether or not the depositor is resident in Jersey.

The details of the legislation will now be scrutinised, and will be brought back to the House later this year for a full debate.  Jersey Finance website, Economic Development Department - Depositor Compensation Scheme - 16-Jul-09.


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