Depositors with savings trapped in failed bank Kaupthing Singer & Friedlander Isle of Man (KSFIOM) are set to receive payments by late summer, according to the Manx Government.
The Icelandic subsidiary collapsed on 8 October last year, leaving depositors' savings frozen in the bank ever since. The Depositors Compensation Scheme, expected to return 70p of every pound of savings, was triggered last month.
John Spellman, finance director of Isle of Man Finance, says: "We are trying to get the money out to people as soon as possible. We are almost through agreeing the terms with the scheme manager."
"The intention is that the first block of payments is agreed by June 30 and money goes out probably in August," he adds.
However, he could not confirm details of the terms, which are in the process of being approved by the island's government, Tynwald.
Invitations for depositors to make their claim were dispatched last Friday and the closing date of the first payment is June 30.
Spellman expressed disappointment the Scheme of Arrangement (SOA) proposals had been rejected, which could have speeded up the process: "If it were me, I would absolutely have taken it. But now we have to move on."
He says he fully supports the outcome of the vote and stresses the Manx Government is doing all it can to return depositors' savings trapped in KSFIOM.
Depositors' action group KSFIOMDAG recently estimated the SOA had cost taxpayers around £1m, but Spellman says that figure "sounds high".
A public enquiry into the collapse of KSFIOM is due to begin in July. It was delayed as the Government was using all its resources to find a solution.
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