Belgian Kaupthing investments guaranteed

20th March 2009, Comments 0 comments

Deposits up to 100,000 euros are safe, says Van Rompuy.

The Belgian Premier Herman Van Rompuy (Flemish Christian democrat) has said that the savings of Belgian investors who put their money in the Luxembourg subsidiary of Iceland's Kaupthing bank are guaranteed to the tune of 100,000 euros.

Van Rompuy was speaking after a consortium of banks failed to back a rescue package for the stricken bank.

The bank is now close to bankruptcy.

Savers are unable to access their money.

Ivo Mechels of the consumers' organisation Test Aankoop told VRT that banks too had a social responsibility.

He labelled the banks' decision not to support the rescue plan as "unethical".

Mechels pointed to the fact that some banks had been obliged to accept government cash to survive, while they were failing to deliver when decisions had to be taken on loans between banks.

The Belgian banks Dexia and KBC and the Dutch bank ING all supported the rescue package. Kaupthing Luxembourg's management is still attempting to avert a bankruptcy and hopes to find a solution ahead of an 8 April deadline.

Some twenty thousand Belgians have a savings account with Kaupthing Luxembourg.

Reynders still "hopeful"

The Belgian Government still hopes that a deal can be struck to save the takeover of Kaupthing Luxembourg. Belgian Finance Minister Didier Reynders (Francophone liberal) announced that talks with all parties are now going ahead.

Duped savers too want a seat at the table and are looking at the possibility of taking part in the rescue plan too. This could be done by converting some of their savings into shares.

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