The Isle of Man parliament has approved a £193m government funding package which will accelerate full repayment for more than three-quarters of depositors with Kaupthing Singer & Friedlander IoM.

The new funding package will enable full DCS entitlement to be paid out to claimants by early September, bringing a 100 per cent return of deposits to more than three-quarters of KSF IOM depositors.

The money from Manx government reserves will expedite payments of up to £50,000 per individual depositor under the island’s depositors’ compensation scheme.

The funding comprises £73m in direct support from government under the DCS regulations and an interest-free loan of £120m. This comprises £21m in advance of levies due from banks, and £99m against future dividends payable by the liquidator.  16-Jul-09.

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See also:

Full repayment by September for majority of Kaupthing IoM depositors  International Adviser website - 16-Jul-09.

Kaupthing Singer & Friedlander savers to get compensation within weeks  Telegraph website - 16-Jul-09.

Icelandic savers to get money back  Reuters website - 16-Jul-09.

Isle of Man to pay savers £193m Financial Times website - 17-Jul-09.

Isle of Man to pay out £193m  City A.M. website - 17-Jul-09.

Protection of individual savers' assets has been a key theme in the financial sector since banks started to collapse or fall into government hands. Investors who considered that their savings were solid learned quickly to their immediate pain that high rates of return can come with a substantially increased level of risk. 06-Nov-08.

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