September 30, 2015 / 3:53 PM / 4 years ago

Creditors of Icelandic bank agree on $0.9 bln "stability contribution"

COPENHAGEN, Sept 30 (Reuters) - Creditors of Icelandic bank Kaupthing, which collapsed during the global financial crisis, have agreed to pay 120 billion Icelandic crowns ($940 million) to the national Treasury, broadcaster RUV reported on Wednesday.

Creditors of another collapsed bank, Glitnir, agreed earlier this month to pay 200 billion Icelandic crowns in a similar move that is seen as step towards lifting capital controls imposed during the crisis.

Creditors of Kaupthing also agreed not to file a suit against the state nor the central bank.

Iceland earlier this year proposed levying a 39 percent tax if assets held at banks that collapsed in 2008 were transferred abroad, unless they met “stability” conditions, in effect a contribution from creditors to state coffers.

These should help Iceland to eventually lift the capital controls it imposed when its three largest banks, Landbanki, Kauphting Bank and Glitnir, collapsed. (Reporting by Ole Mikkelsen; Additional reporting by Ragnhildur Sigurdardottir; Editing by Ruth Pitchford)

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