Iceland puts new Icesave deal to Britain, Netherlands

16th February 2010, Comments 0 comments

Iceland has submitted a new proposal to Britain and the Netherlands for compensation over the collapse of the Iceesave bank, the Icelandic ministry of finance said late on Monday.

Reykjavik--At a meeting held at the Icelandic embassy in London, Iceland's negotiation committee "presented a proposal for new solution to the Icesave dispute, based on the agreement reached between government and opposition parties in the Icelandic parliament," the ministry said.

"Following the meeting the parties are assessing the situation," it added.

A spokesman for the British treasury told AFP in London that the meeting, held at Iceland's request, was but one step in the negotiations and did not signal the end of the talks.

No details were immediately available on the details on of the new Icelandic proposal.

On Thursday, Iceland's public broadcaster RUV reported that the Icelandic government had agreed with the opposition on a new proposal to be submitted to London and The Hague.

RUV reported that under the new proposal, compensation of EUR 3.8 billion (USD 5.4 billion) which Britain and the Netherlands are demanding may be brought forward.

The compensation is for the two governments which have already compensated 320,000 British and Dutch savers who lost money in the collapse of the online Icesave bank.

But the government declined to comment on RUV's report and said it hoped to re-launch negotiations with London and The Hague this week.

Iceland's government said on 12 January that it hoped to reopen talks on the Icesave deal in order to avoid putting the divisive question to a referendum.

The country's parliament had narrowly approved on December 31 the terms of a payout to London and The Hague, but Iceland's president refused to sign the bill citing public opposition, and put the question to a national referendum.

AFP/ Expatica

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