Sigrún Davíðsdóttir's Icelog

Yesterday, Landsbanki’s Winding-Up Board paid out ISK432bn (€2,7bn) to priority creditors of Landsbanki. This amounts to a third of the priority claims. Most of this money goes to the Deposit Insurance Guarantee Schemes in the UK and the Netherlands.

Here is the press release:

“The Winding-up Board of Landsbanki Íslands hf. has made the first partial payments to priority creditors in the winding-up of Landsbanki Íslands hf. The partial payments are based on an authorisation in the sixth paragraph of Art. 102 of the Act on Financial Undertakings. Among those receiving payment were creditors in the nine deposit cases in which judgements were recently pronounced by the Supreme Court of Iceland. In tandem with making the payments, the Winding-up Board deposited in special escrow accounts an equivalent percentage of all equally ranked claims which are still disputed or where resolution of disputes is not yet concluded.

The total amount disbursed was equivalent to ISK 432 billion, which is close to one-third of the recognised priority claims. Payment was made in a basket of the main currencies which were available, i.e. euros, pounds sterling, US dollars and Icelandic krónur. Further information is available on the creditors’ restricted area of the bank’s website.”

Minister of Economy and Trade Arni Pall Arnason claims that Iceland doesn’t owe the Dutch and the British anything.

Is this the end of the Icesave dispute? I doubt it. The Dutch and the British might take a different view, not to forget ESA.

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