Iceland poised for foreign payback pact

Article reports that Iceland’s parliament is close to approving the repayment of nearly €4bn lost by British and Dutch savers in the failed Icelandic bank Landbanski – but with a series of conditions that could yet cause the pact to unravel.

The compromise legislation was expected to be published on the 17 August 2009. It aimed to end a two-month impasse since Iceland’s government struck a provisional deal with the UK and the Netherlands on the compensation.

The bill was considered crucial to secure additional billions of euros of international support for Iceland’s shattered economy and to clear the way for talks on its application to join the European Union.

EurActiv, 18.8.09: Banking compensation bill angers Icelanders http://www.euractiv.com/enlargement/banking-compensation-bill-angers-news-222391

ESO: Background information: Iceland hits impasse over lost savings http://www.europeansources.info/record/iceland-hits-impasse-over-lost-savings/

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