More Money Reclaimed to Pay Icesave Skip to content

More Money Reclaimed to Pay Icesave

The Icelandic Icesave negotiation committee announced at a press conference yesterday that based on new calculations from the Landsbanki resolution committee, the total recovery of the bank’s bankruptcy estate is now evaluated at ISK 1,175 billion (USD 10.1 billion, EUR 7.3 billion), up from the last estimate of ISK 1,138 billion (USD 9.8, EUR 7.1).

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

The Landsbanki resolution committee presented the new recovery estimate to claimants in London yesterday. The committee stated that the estate’s portfolio of assets increased by almost ISK 160 (USD 1.4 billion, EUR 1.0 billion) billion in value between April 30, 2009 and December 31, 2010, mbl.is reports.

With an additional ISK 37 billion (USD 319 million, EUR 230 million) being reclaimed, the share of the Icelandic Depositors’ and Investors’ Guarantee Fund in the Icesave debt drops by ISK 19 billion (USD 164 million, EUR 118 million).

The Icelandic Ministry of Finance states that the main conclusion of the new calculations is that the estimated cost which the Icelandic state treasury has to cover because of the Icesave agreements is ISK 32 billion (USD 276 million, EUR 199 million) instead of the earlier estimate of ISK 47 billion (USD 405 million, EUR 292 million).

The committee also announced that there have been delays in certain cases at Reykjavík District Court, which delays payments from the bank’s estate. It is now estimated that repayment can begin on August 1, 2011, instead of June 1 as originally assumed.

Click here to read the committee’s report (in Icelandic), based on the Landsbanki’s resolution committee’s new evaluation, and here to read more about Icesave.

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