Bank of England Grants Loan to Landsbanki Skip to content

Bank of England Grants Loan to Landsbanki

The Bank of England granted Iceland’s Landsbanki Bank a GBP 100 million (USD 172 million, EUR 127 million) loan yesterday so that Landsbanki, which has now been nationalized, could secure its assets in the UK and maintain regular banking operations.

According to ruv.is, discussions are still ongoing between Icelandic and British authorities on a larger loan to enable Icelandic authorities to honor their obligations to Landsbanki’s Icesave account holders.

The British press reported yesterday that British Chancellor of the Exchequer Alistair Darling had announced to the British parliament that the loan had been necessary to prevent the bank’s customers, companies and charities, from running into trouble. Darling said the loan is insured with collateral in Landsbanki’s assets in the UK which British authorities seized last week.

According to a press release from the Icelandic Prime Minister’s office, representatives of Icelandic and British authorities have met “in a friendly atmosphere” to reach a mutual agreement with regards to the Icesave affair and an agreement on the matter has been signed with Dutch authorities.

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