Iceland says good chance Landsbanki assets cover IceSave

Wed Oct 8, 2008 5:00pm BST

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REYKJAVIK (Reuters) - Iceland's government said on Wednesday it believed there was a good chance the assets of Landsbanki, now taken under government control, would cover deposits made by savers in Britain in IceSave.

"There is a good probability that the total assets of Landsbankinn will be sufficient to cover the deposits in IceSave," Prime Minister Geir Haarde said in a statement.

"The governments of the two countries will immediately review the matter in detail through official channels with a view to finding a mutually satisfactory solution."

Icesave suspended operations on Tuesday and stopped customers from withdrawing or depositing money.

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