17 Dec 15: Failed Icelandic bank Glitnir to start repaying creditors

Failed Icelandic bank Glitnir said on Thursday it had got agreement from the central bank to begin paying out billions of dollars owed to creditors since it collapsed in 2008.

Iceland's financial system crashed during the global financial crisis triggering the imposition capital controls to protect the country's krona currency. These rules have prevented creditors of Iceland's failed banks from recovering money generated from asset sales.

Paying out the money to creditors will ultimately enable Iceland to lift the capital controls which have stifled investment and prevented the country from rejoining the international financial community.

"There are two payments, a de minimis payment today and an initial one tomorrow," Maria Agustdottir, who works for Glitnir's resolution committee, said.


Fellow lenders Kaupthing and Landsbanki, which also collapsed, have also applied for exemptions from capital controls.

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Announcement by Glitnir is here

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