Settlement of Icesave claims

Tryggingarsjóður innstæðueigenda og fjárfesta (TIF) on the one hand and the Dutch Central Bank (DNB) and the British Financial Services Compensation Scheme (FSCS) on the other have reached an agreement on a full and final settlement of the claims resulting from deposits held by Landsbanki Íslands hf. (now LBI hf.) in its respective London and Amsterdam branches under the trademark of Icesave. The agreement entails that TIF paid its UK and Dutch counterparts the sum of 20 billion ISK. The funds were paid from part of the assets available in division B of TIF. Division B holds assets which for the most part were accumulated prior to the fall of the banking system in October 2008. An exemption was granted by the Central Bank of Iceland enabling the necessary payments.

DNB and FSCS, like other priority claim holders of LBI hf. have already received payment from LBI hf. amounting to approximately 85% of its principal. Priority claim holders are expected to make full recovery of the principal amount of their claims.

Guðrún Þorleifsdóttir, chairman of TIF stated that TIF is delighted to have managed to reach a final settlement of the Icesave claims at costs which is manageable for TIF and fair to all parties concerned. The settlement will enable TIF to focus its efforts on providing deposit insurance to consumers and other eligible deposit holders in Iceland.

Negotiations on behalf of TIF were handled by Guðrún Þorleifsdóttir, Chairman of the Board, Brynjar Kristjánsson, Managing Director and Gunnar Viðar hdl. from LEX Law firm.

For more information please contact Gudrun Thorleifsdóttir, Chairman of the TIF Board, tel. 8621479