Landsbanki ‘likely to be liquidated before protection comes in’
Friday 24th October 2008, 11:30AM BST.
LANDSBANKI GUERNSEY is likely to be put into liquidation long before any depositors’ compensation scheme comes into effect, Treasury and Resources minister Charles Parkinson has said.
His announcement dashed any remaining hopes of customers that the bank might have been kept in administration until after the DCS was introduced.
The new scheme is due to come into effect, subject to States approval, before the end of the year and directors of Landsbanki Guernsey have put the bank into temporary administration until 6 January.
Customers cannot apply for compensation until a bank is liquidated so should Landsbanki Guernsey still be in administration by the time the States passes the new DCS, which it is planned will guarantee £50,000 per person, depositors could be eligible for compensation.
But Deputy Parkinson (pictured) said that was unlikely. ‘If that occurred they would possibly be eligible, but I think in practice the bank will go into liquidation long before January,’ he said.
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This is Guernsey
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Planned all along I think!!!!!!!!!!!!
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Guernsey’s only honourable option now is to pledge to repay depositors one way or another as both the UK and the Isle of Man have done. It can afford to do so by borrowing from the UK, as Iceland has done. With the reputation of its international financial centre in tatters, Guernsey simply cannot afford not to.
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is anyone really surprised?
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