Written question asked by Lord Laird (Ulster Unionist Party), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Monday, 16 May 2011.

Banking: Iceland

Question: To ask Her Majesty’s Government what sums were intended to be repaid to the United Kingdom under the agreement rejected in the recent second referendum in Iceland; how they intend to pursuethe matter, and in what courts and under which European regulatory framework; and what proportion and amount of the assets of Landsbanki belong to the United Kingdom and the Netherlands respectively.

Answer: The loan agreement with Iceland covered balances for eligible UK depositors up to €20,887 (£16,872), totalling some £2.3 billion. Iceland is a member of the EEA not the EU, therefore it falls to the European Free Trade Association (EFTA) Surveillance Authority (ESA) rather than the European Commission to commence proceedings against Iceland in the EFTA Court. This case, which the ESA is preparing, will confirm whether there is a legal obligation for Iceland to repay the amounts distributed by the UK and the Netherlands on behalf of Iceland. In addition, the UK has a claim in the Landsbanki estate for around £2.2 billion for compensation to eligible UK Icesave depositors above £16,872. This claim is held by the Financial Services Compensation Scheme (FSCS). It would not be appropriate to comment on the claims of the Netherlands.

Secondary information

Type: Written question
Reference: 8923; 727 c273-4WA
Session: 2010-12
Subjects: Compensation Banks Insolvency Repayments Iceland Netherlands Financial Services Compensation Scheme Landsbanki Overseas loans
Link: View this Written question on www.publications.parliament.uk