Part payback for tax haven savers

Published on Friday 8 May 2009 22:11

SAVERS who lost money in the collapse of the offshore arm of an Icelandic bank could get up to 80 per cent of their money back, the administrator said today.

Deloitte said savers in Landsbanki Guernsey, which was part of Iceland's second biggest bank, Landsbanki, and other creditors should get between 70p and 80p for every 1 they had lost.

The group added that it was also planning to make a another payment, of between 15p and 25p for every pound, in August this year, although the money is contingent on loan recoveries and other payments.

Savers and other creditors have already received an initial payment of 30p in the 1.

Around 455 UK savers had a total of 38.7 million deposited with Landsbanki Guernsey, which was put into administration last October, when its parent company was nationalised and put into receivership.

Rick Garrard, joint administrator and Deloitte partner, said: "We expect that the recovery rate for depositors and creditors will be in the range of 68p to 89p in the pound. We believe that the most likely return to depositors and creditors is between 70p to 80p in the pound."

As the bank was based in Guernsey, those who lost money don't qualify for compensation from the Financial Services Compensation Scheme

.