cIcesave is over
An agreement has been reached between Iceland, the Netherlands and Britain.
The Icelandic Depositors' and Investors' Guarantee Fund (DIGF) has reached an agreement with the Dutch central bank (DNB) and the British Financial Services Compensation Scheme (FSCS) over Icesave, the deposit accounts which were held at Landsbanki Íslands bank. The agreement entails a settlement between the three countries and is a full and final settlement of the claims resulting from Icesave. The Icesave dispute has been ongoing since the collapse of Landsbanki in 2008.
Iceland payed a sum of 20 billion ISK to the Dutch and the British as a part of the agreement. Both the DNB and FSCS had already received payments from the estate of Landsbanki amounting to around 85% of the principal. Priority claim holders are expected to make full recovery of the principal amount of their claims, according to the DIGF. Guðrún Þorleifsdóttir, head of the DIGF board, said the was very pleased with the agreement. It is reasonable for all parties.
The Central Bank of Iceland granted three exemptions from the capital controls in order for the agreement to go through. The Bank's foreign exchange reserves were reduced by a total of 29.5 billion ISK as a result of this.
Prime Minister Sigmundur Davíð Gunnlaugsson says that this means a total victory for Iceland on the matter. "The Dutch and British have dropped their claims over Icesave and take what they have been offered from the beginning. This is officially, finally over."
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