BusinessBusiness RecoveryLandsbanki savers in Guernsey unlikely to recoup deposits

Landsbanki savers in Guernsey unlikely to recoup deposits

Savers with accounts in the Guernsey Landsbanki subsidiary are unlikely to recover all their money

Deloitte,
administrators of the Guernsey subsidiary of Icelandic Landsbanki warned
yesterday more than 2000 savers of the bank were unlikely to recoup all their

money.

Depositors have been offered a preliminary pay-out worth just 30%. An initial
survey of Landsbanki
Guernsey
’s assets and liabilities by Deloitte found only £41m of the £121m
owed to depositors and others was available for distribution, the Financial
Times
reports.

The administrators said their ability to pay depositors in full had been
hampered by
the subsequent collapse of Heritable Bank, a UK subsidiary of Landsbanki.
Heritable
held £36m of Landsbanki Guernsey assets.

Rick Garrard, one of the administrators, warned that, without a depositor
protection scheme in Guernsey, depositors were forced to rely on the governments
of Guernsey, the UK and Iceland to compesate any shortfall, which he said ‘is
not an obligation and cannot be assumed’.

Further reading:

Audit Commission admits to £10m Iceland deposits

E&Y takes over Heritable’s loan book

Read
the Financial Times story

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