Page last updated at 11:15 GMT, Thursday, 16 October 2008 12:15 UK

Money back for Landsbanki savers

The administrator says it is working hard to secure repayments

Savers with Landsbanki Guernsey Limited are to receive an interim 30p for every pound deposited with the Icelandic bank, it has been announced.

The bank went into adminstration earlier this month leaving depositors without access to their funds.

Deposits in Guernsey equate to 30% of the total money held by Landsbanki.

In a statement, the bank's administrator said the part-payment was being made available after court approval on Wednesday night.

Further payments

Letters are being sent out to savers telling them how they can withdraw their funds or transfer them to another bank.

The prospects of further payments are said to be good, but will be dependent on the recovery of certain liquid assets and sale of commercial loans.

The administrator said while depositors may be disappointed, they could be assured it will be working very hard to secure repayments as soon as possible.

In a statement released on Wednesday, the States of Guernsey said the UK Treasury had pledged to support it in dealing with the Icelandic government.

Landsbanki Guernsey is a subsidiary of Landsbanki Islands HF.

UK helps States over Landsbanki
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