UK and Dutch councils to be priority claims on old Icelandic banks

So-called wholesale deposits taken by Landsbanki and Glitnir are to be treated as priority claims on the banks’ estates. The Reykjavik District Court passed judgement on the case this morning.

Steinunn Gudbjartsdottir, the chair of the Glitnir resolution committee, says that the court’s decision will be appealed to the Supreme Court of Iceland.

The Glitnir resolution committee has not so far included wholesale depositors among priority claimants, although Landsbanki liquidators have done so. As a result, today’s court ruling will not affect personal Icesave deposits or how much the Icelandic state may have to pay.

The main wholesale deposit claimants at Landsbanki are first and foremost municipalities and regional councils in the Netherlands and the UK. Other notable claimants in the category are several universities and charities — including Naomi House; a British charity which supports children with long-term illnesses. Naomi House lost GBP 5.7 million in Icesave which it still hopes to recover fully, RUV reported.

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