The Icelandic government has wrenched control of two of the country's bankrupt savings banks after they failed to reach a repayment deal with their creditors.
Keflavik Savings Bank and the Byr bank, which in total employ 400 people, count German, Austrian and Icelandic banks among their main creditors, according to reports. Their balance sheets total some 300bn kronur (€1.8bn, $2.4bn), according to a government source. "Several creditors of Byr and Keflavik Savings Bank have now rejected a proposal for debt restructuring," the ministry of economic affairs said in a statement. "Following a request by the boards [of the banks], the Financial Services Authority (FME) has taken control of the savings banks," it added. Iceland suffered a m...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
