London - The British government pledged Wednesday to compensate some 300,000 savers who have placed their money with an Icelandic internet bank following the country's banking nationalization programme. Britain's Chancellor of the Exchequer Alistair Darling said Wednesday that the government would help savers with deposits in the bank Icesave, whose parent company Landsbanki was nationalized by the Reykjavik government.
"I am very aware of the fact that Iceland has, sadly, chosen to default on its obligations here. We are pursuing Iceland and we will pursue it vigorously to make sure that we get the money due to us back," Darling told the BBC.
"But in the meantime, I am going to be able to help those savers who would otherwise have to look to Iceland to get their money back. I am prepared to stand behind them and to stand behind the depositors."
The British government has legally guaranteed the protection of deposits of up to 50,000 pounds (90,000 dollars) for individual savers, and 100,000 pounds for those holding joint accounts.
However, Darling told the BBC that he was hoping to be able to announce compensation above that level in a statement to parliament later Wednesday.
