Page last updated at 11:10 GMT, Thursday, 6 November 2008

800m for Icesave depositors deal

Icesave website
Icesave customers must wait several weeks before getting their cash back

The government is to lend 800m to the Financial Services Compensation Scheme to help depositors with savings in failed Icelandic bank Icesave.

Chancellor Alistair Darling said the government would ensure no individual UK depositor would lose any money as a result of the bank's failure.

The loan will go towards covering the cost of compensating those who lost their money.

Some may have to wait nearly five more weeks before getting their cash back.

The bank, owned by Landsbanki, closed in early October, leaving 230,000 customers without access to their savings.

E-mails are being sent out this week from the FSCS, explaining the refund process to the bank's UK customers.

Refunds will be given in batches over the next three to four weeks, with the cash arriving five days later.

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