Dutch gov't refuses to guarantee Dutch savings at Icelandic bank

BRUSSELS, Oct. 9 (Xinhua) -- The 120,000 Dutch savers who have deposits with the troubled Icelandic bank of Icesave are facing uncertainty as the Dutch government has expressed reluctance to guarantee their savings.

Dutch Finance Minister Wouter Bos said Wednesday that the government does not want to fully guarantee the savings of Dutch consumers with Icesave if Iceland fails to meet its obligations under the deposit guarantee scheme, Dutch daily De Volkskrant reported Thursday.

"If I advance the money there is no longer any pressure on Iceland's government," he was quoted as saying during a Dutch parliamentary debate on the nationalization of Fortis and ABN Amro.

Internet savings bank Icesave stopped to honor its accounts on Monday and its parent company Landsbanki, the second biggest bank in Iceland, was put under government protection on Tuesday. Dutch savers have a combined 1.7 billion euros (2.3 billion U.S. dollars) of deposits with the bank.

The British government said Wednesday it would compensate all British savers for their deposits with Icesave if the Icelandic government fails to do so. About 300,000 British customers have some 4 billion pounds (6.9 billion dollars) deposited in Icesave accounts.

Bos said Wednesday that the Dutch government is doing everything it can to get the Icelandic authorities to meet their obligations to Dutch people. "They signed a contract with us," Bos said, insisting that the Icelandic government must fulfill its responsibilities.

"We have not yet managed to get assurance from Iceland that it will take responsibility. But we are applying pressure through legal and diplomatic channels and through the supervisory bodies for the financial services sector," Bos told Dutch lawmakers.

He said taking over the Dutch savings in Icesave would be a serious option.

Icesave's Dutch office has been closed and the 30 staff members sent home, Dutch paper Financieele Dagblad reported Thursday. The Dutch central bank has been flooded with calls from worried savers and its website has been extremely busy.