Joint statement on Icesave

The Netherlands and UK Governments have signed agreements with the Iceland Compensation Scheme to reimburse UK and the Netherlands for monies paid to eligible depositors in the Dutch and UK branches of Icesave.

The arrangements enable the assets of Landsbanki to be realised over a period of seven years thereby securing maximum value to all creditors. The Icelandic Government is also a signatory and has guaranteed the amount outstanding to be paid over the remaining 8 years of the agreement. The risk of significant shortfalls in the Landsbanki estate from realising assets too quickly is limited, thus ensuring that the bulk of the cost will be met from Landsbanki assets. All parties emphasised the importance of all Landsbanki assets, wherever they are, being used to repay all creditors of Landsbanki, wherever they are.

Ministry of Finance, 6th june 2009