Iceland Update: Prime Minister Guarantees Icesave Deposits

Gier Harrde, Prime Minister of Iceland has agreed to guarantee Icesave saving deposits in Holland and Iceland on each account for almost £17,500.

There is uncertainty as to how the deposits will be covered but the Icelandic government has said the next move would be to meet with the UK and other EU countries and decide how the payments will be made.

The guarantee could cost around 600 billion Icelandic kronar which is almost £3 billion. Iceland’s Prime Minister also said that he hopes they can raise additional funds by selling off the bank’s assets and that he anticipates that other countries will help with the costs.

In a bid last month to protect British Savers deposits by freezing the assets of Icelandic banks by using anti-terrorists legislation has put a huge strain on the relationship between Britain and Iceland. Almost 230,000 British depositor’s money disappeared when Landsbanki, Icesaves parent bank went into receivership last month.

Source: Google