An increased early payment of up to £10,000 for each Kaupthing Singer & Friedlander Isle of Man (KSF IoM) account holder has been proposed by the Treasury.
The move would enable 40% of eligible depositors to be refunded in full and follows the introduction of an Early Payment Scheme, providing up to £1,000 an account holder, approved by the Isle of Man Parliament (Tynwald) last month.
The payment would be financed from Isle of Man Government reserves pending recovery of bank assets.
Meanwhile, the High Court in Douglas has further adjourned consideration of a winding-up order for KSF IoM.
The court postponed the matter until 19 February when further information will be provided on the Treasury's proposed Scheme of Arrangement- an alternative to liquidation and activation of the Depositors Compensation Scheme.
If approved by the court and creditors, the Scheme of Arrangement would make guaranteed scheduled repayments to savers which would be jointly funded by the government, banking sector and recovered assets.
Approximately 54% of all depositors would be repaid in full within three months of a scheme taking effect, Treasury representative told the court.
While 65% would be repaid in full within 12 months, 71% would get all their money back within two years. The remaining 29% would receive between 65% and 100% of their claims depending on assets recovered, they said.
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation