Dutch state recovered full amount paid to Icesave depositors

Dutch state recovered full amount paid to Icesave depositors

The Dutch state has recovered the full amount it paid out in 2008/2009 to people who lost their savings when the Icelandic internet bank Icesave went bankrupt.

In consultation with Minister of Finance Jeroen Dijsselbloem, De Nederlandsche Bank (the Dutch central bank) recently instructed that the claim on the Icelandic bank Landsbanki, of which Icesave was a branch, be sold to interested market participants and investors.

€811 million of the total amount of €1.428 billion has already been recovered in recent years through the distribution of liquidation assets. The sale of the remaining claim yielded about €623 million for the Dutch state, enabling it to recoup the full amount paid out to savers in 2008/2009.

The transaction has now been formally concluded. ‘I am pleased that the sale has enabled the Dutch state to get its money back quickly,’ said Mr Dijsselbloem.

In October 2008 it emerged that Landsbanki was no longer able to fulfil its obligations. The then Minister of Finance, Wouter Bos, undertook to raise the maximum amount payable under the deposit guarantee scheme to €100,000 per account holder. At that time, De Nederlandsche Bank paid out €1.636 billion, of which €1.428 billion was borne by the Dutch state, and €208 million by Dutch banks. The present transaction means that the banks, too, will recover their principal in full.

The claims on Landsbanki’s liquidation assets are freely tradable. A large percentage of British local authorities sold their claims earlier this year. The state is holding talks with the Dutch local authorities that also have claims on the old Landsbanki and has shared the sales process with them. It is willing to advise them if they decide to sell.

Pin It on Pinterest

Shares