Iceland Is Seeking to Avoid Icesave Court Case, Visir Reports
Iceland will meet representatives of the European Free Trade Association Surveillance Authority in an effort to prevent the island being taken to court over depositors’ guarantees, Visir reported, citing Economy Minister Arni Pall Arnason.
There are “material reasons” to wait and see what comes out the estate of Landsbanki Islands hf before proceeding, Arnason told Reykjavik-based Visir.
About 350,000 U.K. and Dutch depositors of Landsbanki’s high-yielding Icesave accounts risked losing their savings when the lender collapsed with the rest of the island’s financial industry in October 2008. U.K. and Dutch depositors were compensated by their own governments after the failure. A government agreement on Iceland’s repayment terms for the $5.3 billion repaid to depositors was rejected by voters in an April 9 referendum, prompting ESA to continue infringement proceedings.
To contact the reporter on this story: Omar R. Valdimarsson in Reykjavik valdimarsson@bloomberg.net.
To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net
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