All Kaupthing Edge deposits in Germany to be repaid

kaupthing_is_center_blackKaupthing Bank has secured sufficient funds to repay all deposits back to depositors of Kaupthing Edge Germany. Kaupthing Bank has been committed to paying back all priority claims as quickly as possible and has placed great importance on settling the claims of the depositors of Kaupthing Edge Germany. When this repayment has been made, Kaupthing Bank will have repaid all deposits defined by Icelandic law as priority claims, i.e. deposits made at the parent company and at branches belonging to the parent company.

Despite great efforts, due to various complications, this process has been more time consuming than originally anticipated. Most of these difficulties have now been resolved. However, Kaupthing Bank is still working on some technical issues with regard to the payment procedure.

Furthermore, DZ Bank AG, which was appointed as the payment agent for Kaupthing Edge Germany customers, seized EUR 55m, which in the opinion of Kaupthing Bank should have been used to reimburse German Kaupthing Edge depositors. There is every indication that this matter will have to be resolved in court but it will not affect the Bank’s decision to pay out all deposits.

Kaupthing Bank and the German authorities have had comprehensive discussions on this matter in the last few months to develop a solution which fully ensures the secure repayment of deposits to the Bank’s customers.

Kaupthing Edge depositors will receive a letter from the Bank outlining the payment procedure. Customers will have the opportunity to change their contact and account details. Thereafter, the balance of deposits as it was when Kaupthing Edge Germany was placed into moratorium will be repaid.

Kaupthing Bank would again like to thank Kaupthing Edge Germany depositors for their continued patience. As before, depositors are encouraged to visit the bank’s online information centres and Further information and instructions will be posted on these websites later this month.

(Kaupthnig press release)

Comments are closed.