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Iceland to repay lost deposit money
Iceland has agreed to a new deal to repay the UK and the Netherlands billions of pounds of deposits lost when the island’s banks collapsed in 2008, paving the way for new aid from international lenders.
Iceland passed a law in August to repay money lost in high-interest Icesave accounts, but the UK and the Netherlands balked at the terms and held up aid from the International Monetary Fund (IMF) and other lenders for the island’s stricken economy.
Prime Minister Johanna Sigurdardottir said the new deal would allow Iceland to remove currency restrictions, ease interest rates and get international financial aid flowing into the stricken economy again.