Schedule of Payments or the DPS ?

Posted 30/01/2009 - 09:13 by oliverdominic

There appears no difference in the amount that will be returned to depositors between the schedule of payments scheme and the DPS. Under the schedule of payments scheme it will be the payment only and no chance whatsoever of anything further no matter what happens. Under the DPS there is the chance that further payments may be received from recovered KSF IOM assets in the future. Also possible is a further payment which may include lost interest if Kaupthing wins its case (which is being funded by the Iceland government) against the UK government. This may leave open the strong possibility of the KSF Depositors recovering the balance of what is owing to us on the basis of the success of the Kaupthing case against the UK government.

I am sure the KSF Depositors Group will prepare a paper outlining the pros and cons for depositors in the not too distant future. I am not sure that a majority vote by depositors in favour would have the effect of depriving those against the schedule of payments of their individual right to pursue Third Parties in the future. If depositors were so deprived of their right to such action it would smack of a dictatorial decision by the IOM government to protect the UK government from legal action and the potential embarrassment of losing its case just before a UK election.

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