Landsbanki depositors may face even longer delays getting their money from the collapsed bank after the fall of Iceland's coalition government.
Prime Minister Geir Haarde resigned with his cabinet following failed talks with his Social Democratic collation partners. He refused to bow to the Social Democrats' demand to lead the crippled country.
In response to the news of the Icelandic cabinet's collapse, Landsbanki Guernsey Depositors Action Group (LGDAG) says: "We are very concerned this will delay the return of depositors' savings, but hope a new government will work in a more proactive manner to resolve the issues surrounding last year's banking collapse."
"We remain committed to securing the full return of savings in Landsbanki Guernsey and we will work with all parties to achieve this."
Landsbanki depositors in Guernsey are still without 70% of their savings. Chief minister Lyndon Trott recently told LGDAG that Guernsey continues to maintain an ongoing dialogue with HM Treasury and the Icelandic government.
Daily protests, rising unemployment and a currency crisis have blighted the Icelandic government after the collapse of Iceland's financial system including two of its biggest banks last October. Its economy is predicted to retract by nearly 10% this year.
The coalition has reportedly been strained for the past three months between Haarde's Independence Party and foreign minister Ingibjorg Gisladottir's Social Democrats.
The announcement of the cabinet collapse comes a few days after the prime minister called for an early general election on 9 May, adding he will not stand due to health reasons.
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