Landsbanki expat group lobbies G20 over 'unsafe' Guernsey

Over 100 expat Landsbanki Guernsey depositors have joined forces to raise awareness of "unsafe" Guernsey and their lost savings to the G20 nations.

Members of the group say they are "thoroughly disillusioned" with the Guernsey government and argue it has done "next to nothing" to recover their savings.

They hope lobbying G20 leaders will put pressure on the UK and Guernsey governments to resolve the situation where depositors in the failed subsidiary of the Icelandic bank are still without 70% of their savings.

The Landsbanki G20 Action Group is solely for expats and is independent of Landsbanki Guernsey Depositors Action Group (LGDAG) but shares many members.

"We will take any action to show Guernsey up in the world markets for what it is: a jurisdiction that completely lacks moral fibre and falls at the first hurdle in supporting some 1,600 depositors who to date are still owed £81m by a Guernsey Financial Services Commission-regulated bank," says Barry Wild, coordinator and representative of the group.

Many of the group believe Guernsey is "an unsafe jurisdiction" because the government has not bailed out savers.

"We have global reach in almost all of the countries attending this G20 conference," says Wild.

"During the next few days members will be strongly lobbying their relevant countries to add their support for action against countries such as Guernsey, Jersey and the Isle of Man which have been labelled 'Tax Havens' by the UK Prime Minister and Chancellor of the Exchequer," he says.

In his letter to the South African president, Wild says: "Of great concern is the safety or otherwise of a state that regulates a bank within its jurisdiction and then walks away when the same bank collapses.

"Tax issues aside, the question has to be asked whether Guernsey is a safe place to invest in the light of this scandal which has affected some 1,600 people."

Wild urges the Guernsey government "to do the right and moral thing" as he says it is the only government in the western world to turn its back on depositors affected by the Icelandic banking crisis.

However, a spokesman for the Guernsey Government says: "The return of deposits is a case for the court appointed administrators and the role of the Guernsey government is one of support."