Iceland to pay Dutch clients of failed bank

17th November 2008, Comments 0 comments

Under the newly-formed agreement, Iceland will reimburse EUR 20,000 per account holder.

17 November 2008

REYKJAVIK - Iceland's government on Sunday agreed to reimburse British and Dutch depositors of failed internet bank Icesave.

The agreement with the British and Dutch governments and other EU countries clears the way for the troubled Atlantic island nation to receive help this week from the International Monetary Fund and other sources.

Foreign Minister Ingibjorg Solrun Gisladottir said in Reykjavik that deposits by British and Dutch citizens in Icesave amount to some EUR 3.5 billion.

The European Union would help Iceland with credit to fulfil obligations to international bank clients. Reykjavik is hoping for more than USD 6 billion (EUR 4.7 billion) in assistance.

Restitution for deposits up to EUR 20,000 per client would be covered under Icelandic law. According to the agreement, British and Dutch clients will be reimbursed under the rules of the European Economic Area.

Iceland does not belong to the EU, but is a member of the economic community.

[dpa / Expatica]

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