Appraisement of Iceland’s Banks Completed in April

http://www.icelandreview.com/icelandreview/daily_news/?cat_id=40764&ew_0_a_id=320374

24/02/2009 | 12:12

Appraisement of Iceland’s Banks Completed in April

The final appraisement of the assets and debts of the new state-run banks, Landsbanki, Íslandsbanki (formerly known as Glitnir) and Kaupthing, will be submitted on April 15 at the latest.

The headquarters of Landsbanki in Reykjavík. Copyright: Icelandic Photo Agency.

International auditor Deloitte, which is working on the appraisement, will submit its conclusion by the end of March and then global strategy consulting firm Oliver Wyman will hand in a compatible reevaluation of the three banks, as confirmed to Morgunbladid by the Icelandic Financial Supervisory Authority (FME).

Once the appraisement has been submitted, it will become clear how much money can go back into the old banks. According to Morgunbladid’s sources, the Icelandic government is about to reach an agreement with a foreign consultant on negotiating on the payoff on its behalf.

The Icelandic government must base the negotiation on the payoff on its agreement with the International Monetary Fund (IMF) from November last year.

If the owners of the old banks—primarily foreign claimants—are not content with the payoff, they might file a lawsuit to reclaim their funds.

Click here to read about the refinancing of the Icelandic banks and here to read more about the banks’ claimants.