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Treasury works on KSF scheme

Officials at the Manx Treasury are continuing to work on their latest repayment scheme for depositors in Kaupthing Singer and Friedlander Isle of Man, without it going into liquidation.

A hearing in Douglas yesterday adjourned a winding-up order, for three more weeks. 

It was the third such adjournment, and a disappointment for some depositors, who want the Depositors' Compensation Scheme to be triggered.

But Treasury officials told the court their Scheme of Arrangement would make assured repayments more quickly, funded by government, the banking sector and recovered assets.

An estimated 54 per cent of all depositors would be repaid in full within three months, and 65 per cent within a year.

Treasury Minister Allan Bell is confident the scheme now being drawn-up will benefit more depositors in the long run.

He told Manx Radio:

"The small depositors - the up to £50,000 value depositors - their money is safe whatever happens, under either scheme, whether the Depositors' Protection Scheme kicks in, or under the Scheme of Arrangement.

"What we are trying to do as far as they are concerned, with the Scheme of Arrangement, is to ensure a speedy return of that money to the various individuals.

"We think though, in the broader scale, that the Scheme of Arrangement will actually bring added benefit to the larger depositors."

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