Funds for depositor's compensation scheme on hold

Mon, 13 Aug 2012

Treasury Minister Eddie Teare

A development in the UK means the Treasury may not have to remove £100 million from its reserves for a new depositor's compensation scheme.

A recommendation from a Tynwald committee had suggested that the money was set aside in case another situation like the KSF crisis arises in the near future.

Although the money would only have been moved, it would have still left a huge hole in the account branded government’s "rainy day fund".

Now changes to the banking system in the UK means there could be major revision to existing schemes, which could for the first time be extended to include the crown dependencies.

With this in mind the Treasury Minister Eddie Teare says he will be holding off moving any funds until he has more clarity on the developments:

(PLAY AUDIO BELOW)