Big 4 firm Deloitte has warned savers in
Guernsey that they may not recover all of their money from the island's subsidiary arm of Landsbanki.
Administrators from Deloitte said that as
Guernsey does not have a depositor protection scheme, the island's government, along with the UK and Icelandic governments, has no obligation to make up individual savers' losses.
Landsbanki
Guernsey owes £121 million to savers with £41 million available for distribution, meaning that depositors will be able to recover 30p for every pound saved.
Rick Garrard, a Deloitte administrator, said: "The part-payment will be made on all deposits as at October 7th, 2008, the day the bank went into administration."
He added that that Deloitte would provide savers with details on how to request withdrawals or transfers of funds.
Kevin Mountford of moneysupermarket.com told the Times that the prospect of the island's savers losing 70 per cent of their life savings was "a devastating blow".
Yesterday, the Times reported that Ernst & Young has been put on standby to step in as administrator for the UK assets frozen in Landsbanki.
As yet, no comment has been made by Ernst & Young or the UK government.
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