Iceland close to deal with UK and Holland
REYKJAVIK (AFP) - Iceland is close to an agreement to repay Britain and the Netherlands for losses from the collapse of the Icesave bank but a referendum must still be held, the finance minister said Thursday.
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"We have made quite some progress, we're drawing close to shore. I believe that a deal significantly better for Iceland is close," Steingrimur Sigfusson told RUV public radio.
Iceland is close to a deal, but on Saturday is to hold a referendum on a previous, less favourable version of a compensation deal.
The bill to be voted on, which according to a poll published Tuesday would be rejected by three quarters of voters in a plebiscite, would pay Britain and the Netherlands 3.9 billion euros (5.2 billion dollars).
The money would cover British and Dutch government reimbursements to 340,000 savers hit by the collapse of the online bank in October 2008.
Sigfusson did not see the referendum being called off at the last moment.
"The likelihood of a cancellation is getting less and less. It's highly unlikely that the vote will be cancelled," Sigfusson said.
An Icelandic delegation is in London where negotiations with British and Dutch authorities are taking place.
Last Updated (Thursday, 04 March 2010 13:42)
