Iceland nears Icesave deal with UK, Dutch: report

REYKJAVIK (BestGrowthStock) – Iceland is within days of reaching a deal with Britain and the Netherlands on repaying the more than $5 billion paid to Landsbanki Icesave accounts holders after the bank collapsed, according to a report late on Saturday.

Britain and the Netherlands covered the losses of British and Dutch account holders in the Icesave accounts after the Icelandic bank collapsed in October 2008 and have been trying to recover the money from recession-hit Iceland.

Agreement has been reached on all the main points of a new deal between Iceland, Britain and the Netherlands, with the money to be paid back at an interest rate of 2.78 percent, and the deal would be ready in the next few days Icelandic television stations Channel 2 said, citing unnamed sources.

A few issues are outstanding but negotiators are in constant contact, it said.

Icelanders rejected a previous agreement with a 5.5 percent interest rate in a national referendum last March.

The draft agreement has been presented to SA (the Confederation of Icelandic Employers) and officials of Landsvirkjun (the National Energy Company).

Representatives of the finance ministry have said in confidential meetings that the new agreement is favorable to Iceland, according to Channel 2.

Iceland’s finance ministry said on November 16 it hoped to secure a final resolution on the so-called Icesave debts with Britain and the Netherlands in the next few weeks.

(Reporting by Omar Valdimarsson; Writing by Helena Soderpalm; Editing by Karen Foster)

Iceland nears Icesave deal with UK, Dutch: report