This morning at a hearing in Luxembourg, the EFTA Court rejected all claims made by the EFTA Surveillance Authority against the Icelandic state in the Icesave dispute.

The EFTA Court ruled that Iceland should not be declared in breach of the law as claimed by the EFTA Surveillance Authority.

The Court rejected the claim that Iceland had breached the law or discriminated against depositors when it denied foreign depositors the right to withdraw their funds while Icelandic depositors were allowed to do so. If the EFTA court had ruled against Iceland, Holland and the UK court have pressed further charges against Iceland for up to 2.3 billion euros in damages.

The Court’s ruling does not however alter the fact that the Icelandic bank Landsbanki must continue to pay the UK and the Netherlands to reimburse the deposits both countries have covered since the collapse of the online savings account in October 2008.

This judgement, which concludes the procedures with the EFTA Surveillance Authority in regard to the Icesave case, is final and cannot be appealed.