Iceland to compensate UK savers

Sunday 7th June 2009

Iceland has agreed to begin repaying British savers after the UK government had to intervene in the wake of the failure of the Scandinavian state's banking system.

The UK government used anti-terror legislation to freeze funds held by the country's banks and then loaned Iceland £2.3 billion in order to prevent depositors from losing money.

Iceland has now agreed to repay the amount with interest to the Treasury.
Commenting on the deal, a spokesman for the Treasury said: "This is good news for UK taxpayers and good news for Iceland.

"The government welcomes Iceland's commitment to recognise its obligations under the EC Deposit Guarantee Scheme to repay depositors in Icesave," he added.

About 300,000 Britons held accounts with Landsbanki, which collapsed in October last year. The bank's Icesave brand attracted many depositors with its high interest rates.
ADNFCR-1783-ID-19206572-ADNFCR

Related News

FTSE 100 rises with gains for miners - 05/06/09
The FTSE 100 was up on Friday with gains for miners leading the way

Liverpool owners post £42m loss - 05/06/09
The holding company controlled by Liverpool co-owners Tom Hicks and George Gillett has announced losses of more than £40 million in the year to August 2008

FTSE 100 up 1.5% with gains for miners - 05/06/09
The FTSE 100 was up in early trading today with strong gains for miners

Interest rates held for fourth straight month - 04/06/09
The Bank of England has held interest rates at 0

May boon for UK house prices - 04/06/09
The sharpest monthly increase in UK house prices in seven years was felt last month, the Halifax has said

<< Back To News Listings

News Article Search

Quick Apply