Dutch banks suffer serious loss due to Icelandic bank's demise
www.chinaview.cn 2009-01-23 23:18:25   Print

    BRUSSELS, Jan. 23 (Xinhua) -- Dutch banks have suffered a loss of around 230 million euros (about 294 million U.S. dollars) due to the bankruptcy of Icelandic Internet bank Icesave, the Dutch central bank said on Friday.

    Under the Dutch savings guarantee system, when a bank goes bankrupt, other banks have to share the costs of compensating Dutch savers for part of their lost deposits with the bankrupt bank.

    Because of the Icesave demise, Dutch banks have to fork out 212million euros (271 million dollars) for its customers, the central bank said.

    An additional 230 million euros (294 million dollars) went to the administration costs of making these paybacks, it said.

    Some 144,000 individuals and organizations in the Netherlands have a combined 2 billion euros (2.56 billion dollars) deposited with Icesave, which was launched in the Netherlands last May.

    All accounts were frozen last October when Icesave's parent company Landsbanki was put under Icelandic government's protection after getting into financial difficulties.

    Under a deal between the Dutch and the Icelandic governments, savings of up to 100,000 euros (128,000 dollars) are guaranteed for each Icesave account. The Icelandic authorities should ensure compensation for the first 20,887 euros of each saver and the Dutch authorities and banks are together responsible for the rest of the savings.

Editor: Yan
Related Stories
Home Business
  Back to Top