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Page last updated at 13:06 GMT, Friday, 24 October 2008 14:06 UK

More time for KSF deposit talks

KSF (Isle of Man) building
The Isle of Man bank was closed on 8 October

Government officials have been given more time to negotiate the return of deposits trapped in Kaupthing, Singer and Friedlander (KSF) Isle of Man.

A petition to wind up the collapsed bank was adjourned in the High Court following a Treasury application.

The Isle of Man subsidiary was forced to close when the UK government froze Icelandic bank assets, officials say.

Manx officials are in talks with the UK Treasury about the plight of savers, who had about 840m deposited.

Reacting to the adjournment, Manx Treasury Minister Allan Bell said: "This is a very helpful development which provides a breathing space for negotiations to continue.

"The government is doing everything it can to achieve a resolution that is best for both the bank's depositors and the Isle of Man."

Governments' responsibility

Manx Chief Secretary Mary Williams, Chief Financial Officer Mark Shimmin and Financial Supervision Commission (FSC) Chief Executive John Aspden are in London for talks with UK treasury officials.

Angry KSF Isle of Man depositors have formed an action group and have petitioned the UK government over what they call its "irresponsible and unfair" action.

The Manx Financial Supervision Commission (FSC) suspended the bank's licence on 8 October after its parent bank Kaupthing hf was nationalised by Icelandic authorities in the wake of the UK action.

The Icelandic bank had issued a parental guarantee in September 2007 to take responsibility for the liabilities, including deposits, of its Manx subsidiary.

"The Isle of Man Government is looking to the governments of the United Kingdom and Iceland to act on their responsibilities," a Manx government spokesman said.

UK treasury officials say they are representing the island in discussions with Iceland in a bid to retrieve savers' money.


SEE ALSO
Treasury talks over KSF deposits
23 Oct 08 |  Isle of Man
Governments petitioned on savings
20 Oct 08 |  Isle of Man
Icelandic bank savers await help
18 Oct 08 |  Moneybox
Iceland cash 'may be written off'
18 Oct 08 |  Isle of Man
UK offers hope for KSF depositors
15 Oct 08 |  Isle of Man
Savers demand answers on collapse
12 Oct 08 |  Isle of Man

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