The Treasury Minister says he’s convinced the proposed Scheme of Arrangement for depositors with the collapsed Kaupthing Singer and Friedlander bank is the best way forward.

During the sitting of Tynwald which starts today, Allan Bell will ask the court to approve the transfer of ?180 million from government reserves, to ensure funding is in place.

The scheme would make guaranteed scheduled payments to depositors underpinned by government, subject to approval also being obtained from the High Court and creditors next month.

Should that be granted, more than 70 per cent of eligible KSF depositors would be repaid in full within two years.

Mr Bell says a scheme could not have been brought forward any quicker.

On Agenda last night he said:

"This is very complex and complicated issue.

"If we were simply dealing with the liquidation of a corner shop, yes it could have (been brought forward sooner), but it's not.

"It's complicated by the fact it's linked to Iceland and the collapse of the Icelandic economy, (and) it's massively complicated because of the links to the United Kingdom and the fact that ?550 million of our money is trapped there.

"We have no clear idea yet what the final payout from the United Kingdom might be, and that's made it virtually impossible to have an accurate assessment when we try to rebuild the balance sheet.

"So I don't think we could have moved much quicker, it is a very, very complex issue and complicated by the large number of various interests which are involved in it."