Court rules deposit-guarantee laws do not cover 'systemic bank failure' in Icesave case

Iceland has won its legal battle to avoid being forced to pay back the British government for losses incurred by the collapse of the bank Icesave.

The European Free Trade Association Court has ruled that deposit-guarantee laws do not cover "a systemic bank failure of the magnitude experienced in Iceland".

Around 340,000 British and Dutch people lost a total of €3.5bn when the online bank went bust.

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