Kaupthing’s Assets Suffice to Cover Edge Deposits Skip to content

Kaupthing’s Assets Suffice to Cover Edge Deposits

Prime Minister of Iceland Jóhanna Sigurdardóttir announced during the annual general meeting of the Central Bank on Friday that it has now become clear that the assets of Kaupthing Bank will suffice to compensate Kaupthing Edge savers in Germany.

Prime Minister Jóhanna Sigurdardóttir. Photo by Geir Ólafsson.

Sigurdardóttir said this conclusion is very pleasing, mbl.is reports.

In her speech, the PM also revealed that the total debt of the Icelandic state was expected to amount to almost ISK 1,100 billion (USD 8.49 billion, EUR 6.54 billion) at the end of 2009 but that the state also has a number of assets.

According to economic forecasts, the negative position of the state treasury will be ISK 150 billion (USD 1.2 billion, EUR 890 million) at the end of this year.

However, Sigurdardóttir warned that the state’s gross debt would remain high in the short term because of loans with high interest rates that were taken to honor Iceland’s obligations towards the account holders of Landsbanki’s online savings unit Icesave in the UK and the Netherlands.

Click here to read more about Kaupthing Edge and here to read more about Icesave.

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