Prime Ministers meet to discuss Kaupthing savers

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Belgian, Luxembourg Prime Ministers discuss how Belgians who have accounts with Kaupthing Bank can recover their savings.

15 October 2008

BRUSSELS -- The Belgian Prime Minister Yves Leterme met his Luxembourg counterpart Jean-Claude Juncker Wednesday to help savers with the Kaupthing Bank recover their money.

Kaupthing Bank has been hit hard by the financial crisis and is now on the edge of bankruptcy. The Icelandic bank has a branch in Luxembourg and thousands of Belgians have accounts there.

In the meeting, Leterme asked Juncker to increase the maximum amount the Luxembourg government pays out to account holders with bankrupt banks from EUR 20,000 to 50,000 per account – a figure agreed at last week’s EU meeting.

The Belgian government guarantees the first EUR 100,000 on any account held at a bank in Belgium.

However, as the Kaupting accounts are held at its branch in Luxembourg, Belgians who have accounts there are subject to Luxembourg financial regulations.

Speaking on Wednesday morning, Leterme told journalists that the federal government hopes that account holders with Kaupthing will be able to recover as much of their savings as possible.

Besides meeting with the Luxembourg prime minister, Leterme also met with several Kaupthing account holders.

Speaking after the meeting, one of the account holders told the VRT radio that "They always said that we as savers wouldn't be affected by the crisis. We expect a solution to be found."

The account holder says a solution will provide a clear signal to customers with other banks.

[ / Expatica]

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