Belgian savers can't access Kaupthing accounts

10th October 2008, Comments 0 comments

The Icelandic bank blocks accounts since Wednesday night, while the Belgian banking commission says that savings will be guaranteed.

10 October 2008

BRUSSELS -- Since Wednesday night Belgian savers are unable to access their accounts with the Icelandic bank Kaupthing.

On Wednesday night a Belgian saver attempted to transfer money to another account but was unable to do so. The saver either received an automatic phone message saying her deposits were insufficient or was unable to access the website.

When she reached an employee by phone, she was told that the system was blocked and it could take six months for her to access her money.

Kaupthing Belgium is a subsidiary of Kaupthing Luxembourg.

Hein Lannoy of the Belgian bank commission says that Kaupthing is experiencing cash problems, but insisted the authourities were taking exceptional measures to guarantee customers' savings.

The Icelandic banking system is failing and the Icelandic Government took control of the entire bank sector by Thursday.

[ / Expatica]

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