The government became the largest creditor to Landsbanki estate, which operated as Icesave in the UK, after fully refunding British retail savers when the Icelandic deposit insurance scheme failed to meet its obligations.
The total payout amounted to £4.5bn, and economic secretary to the Treasury Andrea Leadsom said £3.82bn had now been recovered.
The government remained committed to recovering the full outstanding amount of the British taxpayer’s claim from the Landsbanki estate, she said, and was on course to recover the full amount by 2017.
The payment received today will be used to pay down the national debt.
‘A key part of our long term economic plan is getting taxpayers’ money back from the financial crisis, including the collapse of Iceland’s banking system in 2008,’ Leadsom said.
‘The failure of the Icelandic banks cost taxpayers billions of pounds, with no certainty of ever getting the money back. We remain committed to recovering the full outstanding amount of the British taxpayer’s claim from the Landsbanki estate, and will continue to work hard to make this happen as soon as possible.’
