Date is set for Kaupthing payout

The scheme will cost the government £11m

The date of a £1,000 payment to all savers with collapsed bank Kaupthing, Singer and Friedlander Isle of Man (KSFIOM) has been announced.

A Manx government information pack, which is being mailed out to the failed Icelandic bank's depositors, says payments will be made from 19 January.

The correspondence also shows those eligible for the payment how they can apply for it.

Tynwald approved an £11m scheme to cover the payments from its reserves.

Included is an explanatory letter from Treasury Minister Allan Bell, guidance notes and application forms.

He added that the Manx Government remained committed to finding a solution to the KSF Isle of Man insolvency.

The Early Payment Scheme, he said, reflected the government's concern that account holders were treated fairly.

However, the government also recognised payments under the scheme were an interim measure, pending the finalisation of a more comprehensive solution.