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Landsbanki depositors urge CPA to take action

Landsbanki Guernsey depositors are urging the Commonwealth Parliamentary Association to support attempts to recover 100 per cent of savers money frozen with Landsbanki Guernsey.

In an open letter sent to CPA representatives attending the organisation’s international parliamentary conference this week, the Landsbanki action group highlights that over eight months have elapsed since Landsbanki Guernsey was placed in administration.

LGDAG spokesman Matthew Dorman says: “While savers in the UK have received 100 per cent of their deposits and the UK government has now negotiated a repayment schedule to recover 100 per cent of the money used to support depositors, the 1,600 savers of Landsbanki Guernsey have so far only received 30 per cent of their deposits with the possibility of recovering only 80 per cent over several years.”

Despite submissions to the Guernsey authorities, the group says no support has been forthcoming.

It says the final cost to the Guernsey general treasury to ensure depositors are repaid in full is £5.8m, assuming the administrator recovers 80 per cent.

This, it says, is less than 2 per cent of average annual income received by Guernsey from the financial sector.

The letter reads: “The LGDAG would appreciate your support in the resolution of this issue and hope that you can use your best efforts to persuade those policy makers to review their previous decision not to assist the savers in Landsbanki Guernsey but to follow the lead of all other countries which have affected depositors in their jurisdiction and support we who entrusted your authorities to provide a safe environment in which to deposit our savings.”

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