Iceland, Britain and the Netherlands have yet to agree on terms for how Reykjavik is to repay 5.4 billion dollars to British and Dutch savers after the collapse of an Icelandic bank, dpa quoted public broadcaster RUV as reporting today. The British and Dutch governments had initially stepped in to compensate their own citizens who lost money when the Icesave bank, an arm of the Landsbanki lender, collapsed in the autumn of 2008. Icelandic negotiators Friday briefed the government and opposition leaders about talks held earlier this week in London with British and Dutch officials, an Icelandic finance ministry spokesman told the German Press Agency dpa. The parties are still exchanging information, the spokesman said, underlining that they have agreed not to discuss the content of the talks. Reykjavik had agreed to repay the money, but the countries have since disagreed on the terms of the deal and the plan has divided Icelanders. Prime Minister Johanna Sigurdardottir said that, as the situation stands, a referendum on the matter would go ahead March 6. Parliament voted for a referendum following a protest in which over 61,000 people - or a quarter of the country's electorate - signed a petition against the compensation deal. Complaining that Iceland was already saddled with huge debts, critics have said Icelanders should not be held responsible for mistakes made by a few private banks. The terms could also cripple Iceland's long-term recovery. Fulfilling the Icesave compensation plan, with payments made in installments over the next 14 years, is seen as necessary for Iceland to progress with its efforts to join the European Union. Reykjavik handed in a membership application in July.
