Iceland to repay Netherlands, Britain in Icesave failure

[muriel_volestrangler]

Source: AFP

THE HAGUE — Iceland is to repay the Netherlands and Britain the full amount that they advanced to their citizens who lost money in the failure of the Icelandic bank Icesave, the Dutch finance ministry said Thursday.
...
The agreement, worked out in talks in London Wednesday among the three countries, calls for the Netherlands to receive a total of 1.3 billion euros (1.7 billion dollars) with an interest rate of 3.0 percent.
...
Britain and the Netherlands held intense discussions with Iceland ahead of a March 6 Icelandic referendum on a deal under which Iceland would repay the two countries 3.9 billion euros (4.9 billion dollars) to compensate for money they paid to 340,000 of their citizens hit by the collapse of the online Icesave bank in October 2008.

However, after more than 93 percent of Icelandic voters rejected the deal to repay the money by 2024 at what was widely considered a high interest rate of 5.5 percent, the talks stalled.

Read more: http://www.google.com/hostednews/afp/article/ALeqM5iRuZKAlBnaviukPk5_uJ5S_BC8rg?docId=CNG.2eaae211a72d9ac2fa71237832b70909.cd1

---

More here:

"If (the Icelandic) parliament approves the agreement and the law, and Iceland's president will sign it, the Icelandic government will get the mandate to finalise the agreement," the Dutch Finance Ministry said in a statement.
...
Iceland will start to repay the full amount owed to the Netherlands and Britain from July 2016 and after pay-outs received from liquidated assets of collapsed bank Landsbanki, the parent company of Icesave.

Icelandic reports have said a new agreement would cost Iceland 60 billion crowns ($525 million). The rest of the money will come from assets recovered from Landsbanki.
...
Iceland compensated its own savers who lost money, but Britain and the Netherlands footed the bill for their citizens who had online Icesave accounts run by Landsbanki.

http://www.reuters.com/article/idUSLDE6B81LR20101209

[Joanne98]

1. More protests are coming!