Icesave cost Dutch state more than expected

22nd May 2009, Comments 0 comments

The collapse of Icelandic internet bank Icesave cost the Dutch state EUR 106 million – EUR 14 million more than expected.

The Hague – The fall of the Icelandic internet bank, Icesave, has cost the Dutch State more than previously estimated, according to a report by Netherlands Court of Audit.

The recently released report by the independent body charged with monitoring the collection and spending of public funds said the cost of repaying those who lost their savings in the Icelandic bank came up to EUR 106 million.

Earlier, the ministry of finance had estimated the cost of repaying some 100,000 individual savers, as well as municipal and provincial governments, at EUR 92 million.

Icesave went bankrupt in October 2008 following financial difficulties with mother company Landsbanki.

The Dutch government reassured savers that they would guarantee deposits up to EUR 100,000. The Icelandic government bore the brunt of the refund, while the Dutch government guaranteed the remainder.

Radio Netherlands / Expatica

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