Press release
2009.02.10, 13:37
Kaupthing Bank has secured sufficient funds to pay back the large majority of German Kaupthing EDGE deposits
In light of the interview with Olafur Ragnar Grimsson, President of Iceland, in the Financial Times Deutschland earlier today, the Resolution Committee of Kaupthing Bank hf. would like to reiterate the announcement it made at the creditors' meeting of the Bank last week. In addition, the Resolution Committee would like to stress that payments to depositors will be made out of the funds of the Bank and therefore, payments will not require funding from the Icelandic Government.
The Resolution Committee is committed to paying back all priority claims as quickly as possible, and it has therefore since last October placed great importance on settling the claims of the 30,000 depositors in Germany and has put forward several proposals to achieve this aim. As the Bank has now secured sufficient funds it is possible to pay back the large majority of the German deposits. However, EUR 55 million have been seized by DZ Bank and therefore it is not possible to pay deposits back in full at this stage. It is the opinion of the Resolution Committee that these funds belong to the German Kaupthing EDGE depositors and hence, they will be used to pay back depositors as soon as the funds have been released by DZ Bank.
The Bank wishes to start making the payments as quickly as possible. A meeting between the Resolution Committee and Entschädigungseinrichtung, which is a subsidiary of the Bundesverband deutscher Banken e. V., is scheduled today to discuss this matter further. Another press release will be made once the plan is ready.
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