Kaupthing Loaned ISK 450 Billion Immediately Pre-Crash Skip to content

Kaupthing Loaned ISK 450 Billion Immediately Pre-Crash

In its last meeting before the banking collapse in October 2008, in London on September 24, the loan committee of the board of Kaupthing Bank agreed to grant loans worth ISK 450 billion (USD 3.9 billion, EUR 2.9 billion).

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Kaupthing’s former headquarters in Reykjavík. Copyright: Icelandic Photo Agency.

For comparison, the entire tax revenue of the Icelandic state in 2008 was ISK 430 billion.

ISK 270 billion (USD 2.3 billion, EUR 1.7 billion) of the loan amount was supposed to go to the Russian magnate Alisher Ushmanov, a much higher amount than stated in the Althingi parliament’s Special Investigative Committee report, RÚV reports.

The purpose of the loan to Ushmanov was to buy a ten percent share in the Finnish insurance company Sampo. At the time, Exista, Kaupthing’s majority owner, held a 20 percent share in Sampo.

However, Ushmanov never received the full amount of the loan; it is uncertain what happened to the other loans which Kauphting’s board had decided to pay out.

Click here to read more about Kaupthing.

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