Finnish Government measures involving arrangement with Kaupthing
Financial supervisors in Finland and Iceland have endorsed an arrangement to fund the deposits in the Finnish branch of Kaupthing Bank h.f. Nordea Bank Finland plc, OP-Pohjola Group and Sampo Bank plc have granted a fixed-term commitment to finance the deposits of all Finnish Kaupthing Bank depositors (about 10,000 customers) to the full extent including interest.
This is a market-based solution adopted by the private sector, whereby the said banks will bear the commercial risk and credit risk involved in the settlement. The decision does not alter the existing deposit protection principles in force in Finland.
The Government will submit a proposal to Parliament which aims to lend support to the arrangement by granting a guarantee to the Finnish parties involved for risks related to action to have a judgment by default set aside or similar measures. This arrangement has been approved by the Icelandic authorities in charge of financial supervision (FME) and is deemed to conform with the legal provisions in force in Iceland. The Finnish Government's Ministerial Economic Policy Committee has endorsed the settlement.
Finance Minister Jyrki Katainen and Minister Mari Kiviniemi, responsible for the banking sector, both view the agreement reached between Finnish banks and Kaupthing Bank as a good one.
Inquiries: Mr Pekka Laajanen, Legislative Director, tel. 358 (0)9 160 33040