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Tynwald approves early payment scheme for KSF (IoM) depositors
TYNWALD has approved in principle an £11 million scheme to provide an early payment for hard-pressed depositors of Kaupthing Singer and Friedlander (Isle of Man).
Thousands of depositors face losing their life savings, with many facing extreme hardship, after the bank collapsed in October when the UK government put its sister bank in London into administration.
Some 557 million of the Island bank's assets are frozen in the UK bank in administration.
Tynwald this week approved in principle a scheme to provide a payment of 1,000 per account to the depositors, with payments expected to be made in the latter part of January.
Treasury Minister Allan Bell said he recognised for many depositors 1,000 would not represent a significant proportion of their assets.
But he said that about a third had deposits of 4,000 or less and for these 1,000 would be a 'meaningful' sum.
Mr Bell stressed the collapse of the Kaupthing bank was not caused by the Isle of Man and the Manx government wanted to show the depositors that it supported them '100 per cent'.
He said: 'The Isle of Man is standing shoulder to shoulder with the depositors. We know what they are going through.'
Tynwald was told that the 11 million cost of the scheme would be funded out of reserves but the 1,000 would be taken off any further settlement reached for each depositor.
'I can say a massive amount of work is going on behind the scenes with private sector interests as well as government to try to find a way forwards to restructure the assets of the bank,' said Mr Bell.
Speaker Steve Rodan said the scheme would do much in terms of the Island's international reputation. 'It shows the Isle of Man Government is acting responsibly and in the overall interests of the customers of the bank.'
Juan Watterson (Rushen) said Tynwald had to ensure there was no liability for government and that the 11 million would not be going 'into a sink hole'.
Peter Karran (Lib Vannin, Onchan) who the only one to vote against the scheme, said he was 'very concerned' that a 'dangerous principle' had been set that could 'come back to visit us in the long term'.
Tynwald voted for the scheme in principle 20 votes to one in the House of Keys and by six votes to 0 in the Legislative Council.
WHAT DO YOU THINK?
Send your comments to newsviews@newsiom.co.im
YOUR COMMENTS
Your report does not specify whether joint account-holders will receive 1000 each. It does make a difference to some of us.
BOB
Editor's note: Thank you for your feedback. A 1,000 payment will be made for each account. The article above has been amended.
..are you sure, on the IOM Gov website it states, 'per account holder' not 'per account' Thanks,
SAD
Editor's note: iomtoday has checked with the Treasury who confirmed that the 1,000 payment was per account so a joint account would receive a single payment of 1,000. We have suggested that this point should be clarified on the government website.
Just nice to know that someone is trying to help us. Well done Mr. Bell.
JANET F, Cyprus
Just like to say, 1,000 down 369,000 to come. How are we supposed to manage on 1,000 in our joint account, we would have earned more than that in interest since October! How much longer do we have to wait to receive what is rightfully ours? All efforts to retrieve our money is appreciated, however in the scheme of things we desperately need some positive information from the IOM Government and FSC that confirms what is happening to get our lives back free from the worry that we are all experiencing. We need information followed by our funds.
FEDUP
As a victim of the banks collapse - my employer has a loan with KSF, because the Treasury put the bank into administration, we didn't get our draw down and had to lay off our crew and shut the project down. I know the government was trying to protect the investors but had they thought about the small businesses like us? We have familly and personal investments in our project, my employer has personal guarantees against the loan and I have put 18 families out of work! How was this allowed to happen? Who really cares about the impact this has had on the public? I don't think Mr Brown is worried about paying his mortgage, bills, let alone giving his familly a budget Christmas! This needs to be sorted out now. I know the loan book is big but there are real people and families facing the posibility of losing everything unless the administrators adress the smaller loans. The bigger loans are always retrievable as these companies will go into receivership and no one suffers, the smaller loans that are backed up by family homes/savings/pensions need looking into sooner than later. I wish you all a happy christmas, a happier, more positive new year and hopefully a new government soon.
Mr V. UNHAPPY VICTIM
Thanks Mr Bell When can I have the rest of my life savings that I entrusted to a bank in your country.
KAS
There is still uncertainty regarding the 1,000 GBP early payment scheme for KSF depositors as to whether the 1,000GBP is per account or per joint account holder. On 31 December 2008 I received detailed answers by e-mail from the IoM Treasury to clarify several issues concerning the application for early payment of the 1,000 GBP, particularly in the case of joint account holders, and was informed that Tynwald will only decide on eligibility (including whether payments will be per account or per joint account holder) at its first sitting in January 2009.
RHS
"Steve Rodan said the scheme would do much in terms of the Island's international reputation." The scheme is more likely to make the Isle of Man an international laughingstock; frankly does any one think this pathetic handout will reassure any potential depositor in an IOM bank?
M
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Wednesday 08 February 2012
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