New Icesave talks to be held in coming weeks: gvt source

13th August 2010, Comments 0 comments

Representatives of Iceland, Britain and the Netherlands will meet in the coming weeks to discuss a new repayment deal to cover the collapse of Icesave bank, an Icelandic government source told AFP.

The new formal talks will be held "around the end of August or the beginning of September," said the source who spoke on condition of anonymity.

Officials from the three countries last met in Reykjavik at the beginning of July.

Britain, the Netherlands and Iceland had held intense discussions leading up to a March 6 referendum on a deal for Iceland to repay Britain and the Netherlands 3.9 billion euros (4.9 billion dollars) to compensate for money they paid to 340,000 of their citizens hit by the fall 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 and speculation has been rife over when they would resume.

The dispute is considered one of the main sticking points as Iceland begins negotiations to join the EU.

© 2010 AFP

0 Comments To This Article