Thank you for your email regarding Icesave. We have received a large volume of inquiries in recent days and so are not able to provide a specific response at this time. I hope the information below will answer the questions you have raised.

Following recent turbulence in global financial markets, Landsbanki has found itself in increasing financial difficulties as investors lost confidence in its continued independence. The Icelandic Authorities have taken Landsbanki into public ownership and we soon expect it to be declared in default.

On 8 October, the Financial Services Authority (FSA) announced that Icesave was in default for the purposes of the Financial Services Compensation Scheme. Therefore, to ensure that all depositors are fully compensated, the Chancellor has announced that all depositors with Icesave will receive their money in full, as soon as possible through the Financial Services Compensation Scheme. The Treasury will finance the reimbursing of deposits above £50,000, which are not covered by either the Icelandic Deposit Guarantee Scheme or the UK’s Financial Services Compensation Scheme.

It is appreciated the concerns account holders will have and I attach a link below to the Financial Services Compensation Scheme’s website (FSCS) who are responsible for administering the Scheme and where further information can be found including reference to the Chancellor’s announcement on the 8^th October.

www.fscs.org.uk/consumer

The Government, the Bank of England and the FSA are continuing to work together to maintain the stability of the financial system in the UK. The Government’s remains committed to do what is necessary to achieve this.

I hope you find this reply helpful.