Iceland to repay foreign savers

 

Iceland has reached an agreement with several European countries, including the Netherlands and Great Britain, to repay European savers with money in frozen Icelandic bank accounts. The government in Reykjavik has said it will pay back European savers a maximum of 20,000 euros.

The Dutch Finance Ministry sees the announcement as a breakthrough. Following the collapse of the Icesave bank, the Netherlands agreed in principle that Iceland would pay investors back 20,000 euros. But it then proved difficult to realize this agreement. Financiers expect the agreement will be speedily implemented and that savers will find out soon when they can expect to receive their money.

Europe now wants to help Iceland solve the deep recession into which the country has sunk and will support it in its request for large-scale loan from the International Monetary Fund.