Icesave Case Closed if Landsbanki Covers Debt Skip to content

Icesave Case Closed if Landsbanki Covers Debt

The resolution and winding-up committees of the defunct Icelandic bank Landsbanki presented an updated price evaluation of its assets yesterday, according to which, 94 to 99 percent of priority claims will be paid out. If so, Icesave may not be taken to court.


The headquarters of Landsbanki in Reykjavík. Photo by Páll Stefánsson.

“If the government can demonstrate that they will either pay the Icesave claim or negotiate with the British and Dutch governments we will not take the case before the EFTA Court,” Per Sanderud, the president of ESA, the EFTA Surveillance Authority, told

The evaluation does not include the estimated value of Landsbanki’s 67 percent share in the British supermarket Iceland Foods, which is the bank’s largest asset. The share is in a sales process and it is likely that it will be sold before the end of this year.

The British media have stated that the share is worth as much as GPB 2 billion (ISK 370 billion, USD 3 billion, EUR 2 billion).

After the Icesave legislation was rejected in a national referendum in April there was a possibility that the case would end up before the EFTA Court.

Icelandic Minister for Economic Affairs Árni Páll Árnason sent a letter to the ESA in early May stating that it looks as if the Landsbanki bankruptcy estate will be able to cover the vast majority of deposit claims.

The ESA is now reviewing the letter and Sanderud said he expects that the letter will be replied to by the end of June.

Click here to read about Árnason’s meeting with the ESA this week.

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