A bank compensation deal between Iceland, Britain and the Netherlands has finally been agreed.
Talks on ‘Icesave’ have discussed a final agreement for Iceland to pay back 3.8 billion euros to Britain and the Netherlands after the collapse of the island’s banks late last year at the height of the credit crunch. The money is to compensate Britain and the Netherlands for money they paid to disgruntled savers whose deposits were lost.
Iceland’s Prime Minister says the deal has a number of positive effects including helping Iceland remove currency restrictions which were put in place at the height of the crisis and to ease interest rates.
A deal had been approved in August by the Icelandic Parliament but it was rejected by London and The Hague. The sticking point then was an expiry date for the repayment set by Iceland at 2024. Reykjavik has now agreed to continue to make payments until the debt is repaid in full.