To ask the Chancellor of the Exchequer for what reasons he did not ask the International Monetary Fund (IMF) to make full repayment of depositors' monies in Landsbanki a condition of the IMF loan to Iceland. (247569)

On 19 November the IMF announced the approval of a $2.1 billion two-year loan for Iceland to support an economic recovery program to help Iceland restore confidence in its banking system and stabilise its currency. This includes Iceland's commitment to

“ensuring the fair and equitable treatment of depositors and creditors of the intervened banks”

and Iceland's recognition of its obligations to depositors under the EC Deposit Guarantee Scheme Directive.

Details of the stand-by arrangement are available from the IMF website:

http://www.imf.org/external/pubs/cat/longres.cfm?sk=22513.0

To ask the Chancellor of the Exchequer what progress the Government have made in negotiations with the Icelandic government on the return of funds lost by the depositors in Landsbanki Guernsey. (247570)

Landsbanki Guernsey is a subsidiary of the Icelandic parent company, Landsbanki. Landsbanki Guernsey is in administration and is subject to arrangements in Guernsey.

In line with usual constitutional arrangements, the Government will represent the Crown Dependencies in its negotiations with the Icelandic authorities. The focus of the negotiations is to ensure Iceland honours its obligations to depositors under the EC Deposit Guarantee Scheme Directive and ensures the fair and equitable treatment of creditors.

The IMF stand-by arrangement to Iceland, agreed on 19 November, includes Iceland's commitment to

“ensuring the fair and equitable treatment of depositors and creditors of the intervened banks”.