Germany lifts freeze on Iceland’s Kaupthing Bank accounts; payments to restart this week
By APMonday, June 22, 2009
Germany lifts freeze on Kaupthing Bank accounts
BERLIN — Germany’s financial regulator has lifted a freeze on accounts at the German branch of Iceland’s Kaupthing Bank enacted last year to keep it from collapsing.
The regulator, BaFin, said Monday it had received a letter from Iceland’s economy minister stating that the deposits of nearly 31,000 Kaupthing customers in Germany met Icelandic and EU regulations.
Those customers have had euro308 million ($427 million) stuck in Kaupthing accounts since October, when the bank was taken over by Iceland’s government to save it from collapse. The bank remains in government control. Iceland also nationalized the country’s two other major banks, Glitnir and Landsbanki.
The Bafin statement said German customers should be able to access their Kaupthing accounts this week.
