DNB sells remaining claim on old-Landsbanki

Date 27 August 2014

De Nederlandsche Bank (DNB) has entered into an agreement with Deutsche Bank for the sale of its remaining claim on the insolvent Icelandic bank Landsbanki. The decision to sell was taken in close consultation with the Ministry of Finance. As a result of the sale, the EUR 1.636 billion compensation which DNB paid out under the deposit guarantee scheme to depositors of Icesave has been recovered in full. DNB is no longer a creditor of Landsbanki.

Claims on the Landsbanki estate are tradable. Earlier this year a large number of British local authorities with claims on Landsbanki decided to sell them. DNB's claim on Landsbanki arose when a total of EUR 1.636 billion was paid out to Dutch depositors. Of this amount, the Dutch State furnished EUR 1.428 billion and the Dutch banks EUR 208 million.

Added to the past repayments by Landsbanki's bankruptcy receivers, with the completion of the sale of the remaining claim the amount paid out in 2008-09 under the Deposit Guarantee Scheme has been fully recovered. Had the claim been held, complete repayment from bankruptcy assets, according to current expectations, would not have taken place until 2018. Over the intervening years, some EUR 932 million has been collected by DNB in distributions from the Landsbanki estate.

The Minister of Finance today has informed Parliament by letter about the sale of the remaining claim. The Minister has indicated that he will continue the dialogue with other Dutch creditors of former Landsbanki.

The Dutch branch of Landsbanki, operating under the name of Icesave, ran into problems in October 2008 as Landsbanki and other Icelandic banks faced mounting financial difficulties and eventually collapsed. Dutch savers were subsequently compensated for the loss of deposits up to EUR 100.000 under the deposit guarantee schemes of the Netherlands and Iceland.