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Ten-fold increase in KSF payments

A new repayment scheme for depositors in the collapsed Kaupthing Singer and Friedlander Isle of Man, worth £10,000 per account holder, will be considered by Tynwald next month.

It's a ten-fold increase on the sum offered so far under the government's Early Payment Scheme.

The intial £1,000 sum was approved by Tynwald at its last sitting, and will be funded with £11 million from government reserves.

The increased early payment, also expected to come from reserves, will see around 40 per cent of all eligible depositors refunded in full.

At the same time, a separate repayment plan - the Scheme of Arrangement - is also under consideration.

It was put forward in a Douglas court yesterday, when a winding-up order for KSF Isle of Man was adjourned for the third time.

Treasury now has 31 days to clarify issues raised in court, and if the Scheme of Arrangement is approved it will make staged repayments to bank depositors within three months.

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