Order of priority claims under the Emergency Act deemed valid by Icelandic court

The Supreme Court of Iceland today ruled in a case concerning the Emergency Act of October 6th 2008. The ruling entails that the law and associated acts stands undisputed. Since the Supreme Court is a court of last instance no legal uncertainty remains.

The Government of Iceland welcomes this crucial stepping stone towards stable economic recovery.

As regards the Icesave-dispute, the ruling of the Supreme Court is in full accordance with the expectations of the Government as it now seems certain that all depositor claims towards the estate of Landsbanki will eventually be fully covered. The ruling eliminates uncertainty regarding distributions from the estate, which has been in an orderly winding-up process in accordance with Icelandic and European legal requirements. According to the Winding-up Board of Landsbanki, disbursements are expected to commence within weeks.

(This article is a press release from the Icelandic Prime Minister’s office. It appears unedited and in whole.)

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