Treasury Minister Allan Bell has rejected a suggestion his department's policy has added to the hardship being suffered by depositors with Kaupthing Singer and Friedlander Isle of Man.

In the House of Keys today Michael MHK David Cannan said some small depositors had no financial resources other than those held with KSF.

They were now in severe difficulties due to the request to adjourn any possible liquidation of the bank for 60 days, thereby preventing the Depositors' Compensation Scheme being activated.

Mr Bell said his department was fighting to get the best result for depositors.

He told the House:

"The actions taken by Treasury to try and find a rescue what remains of the structure will, if successful, bring forward the payment to depositors, not delay it.

"The adjournment for another 60 days has, therefore, been very beneficial for the great majority of the small depositors who we are trying to help at this point.