KSF early payments will require £94m of taxpayers' cash

TAXPAYERS' cash totalling £94 million would be required to fund larger early payments to Kaupthing Singer & Friedlander depositors.

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Details of the early payment scheme emerged in the House of Keys this week as Treasury Minister Allan Bell was quizzed over whether the banks were fully signed up to part fund the planned scheme of arrangement.

In a written reply to a question from David Cannan (Michael), Mr Bell said the maximum contribution of each bank per year was set at a limit of £350,000 over a period of less than three years.

Mr Bell told the Keys there was 'agreement in principle' from the banks but that if in 'the worse case scenario' they failed to confirm their support, then 'clearly the scheme would fall' and the depositors' compensation scheme (DCS) would be triggered instead.

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