As reported earlier this morning, Iceland has won both its cases in the Icesave trial. The EFTA Court ruling on Icesave rejected all claims by the EFTA Surveillance Authority (ESA) that Iceland should be declared in breach of the EEA Agreement.
The Landsbanki headquarters in Reykjavík. Photo copyright Icelandic Photo Agency.
According to a statement on the verdict from the Icelandic Ministry for Foreign Affairs, the Court rejected the claim that Iceland had breached the Deposit Guarantee Directive and had discriminated against depositors contrary to EEA law.
Iceland had maintained that legal uncertainty existed as to whether a state is responsible for ensuring payments of minimum guarantees to depositors using its own funds.
Payments from the estate of the defunct Landsbanki, estimated at ISK 1,517 billion (USD 11.8 billion, EUR 8.78 billion)—approximately ISK 200 billion more than the priority claims—will continue.
A total of ISK 660 billion in priority claims has been paid from the estate. According to the statement, more than 90 percent of the total which the U.K. and Dutch authorities advanced to cover the minimum deposit guarantee.
The ruling is final and cannot be appealed.
Follow Iceland Review Online for continued coverage of the verdict.