News story

UK authorities receive final payment from Icesave

UK authorities have now recovered all of the British taxpayers money used to support Icesave deposit holders following the firm’s collapse in 2008.

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HM Treasury has today (15 January 2016) confirmed that the government has received the final payment of £740 million from the Landsbanki estate in Iceland, which operated as Icesave in the UK. The government has now received £4.6 billion from the Landsbanki estate and litigation cases.

Taxpayers paid £4.5 billion to UK depositors in Icesave, following the collapse of the Landsbanki estate at the height of the financial crisis in 2008.

Today’s payment means that HM government has now fully exited from the Landsbanki estate, bringing to an end substantial negotiations between the UK and Iceland on recoveries from the estate. A line can now be drawn under this dispute, and HM government looks forward to a renewed, cooperative relationship between the two countries.

The final payment marks a significant milestone in the government’s efforts to recover the costs to taxpayers of the financial crisis, and is the product of sustained engagement between HM government and the Icelandic authorities. All proceeds will be used to pay down the national debt.

The Chancellor of the Exchequer, George Osborne said:

Billions of pounds were spent during the financial crisis to compensate savers of Icelandic banks. Some doubted we’d ever recover the money from Iceland – but today, through patient diplomacy and determination, the government has made another significant step towards recouping taxpayers’ money spent on bailing out our financial system.

Published 15 January 2016