Iceland to pay back Dutch, British loan

Thursday 31 December 2009

The Icelandic parliament has agreed to pay back €3.8bn in loans made by the Netherlands and Britan which allowed it to compensate savers who lost cash when several banks collapsed.

The Dutch and British governments have already partially compensated more than 320,000 savers who lost money when Landsbanki, the parent of online bank Icesave, failed in October 2008.

The money — around 40% of Iceland's GDP - will be repaid over the next 14 years, the Times reports. The measure was passed by a slim majority of 33 to 30 and is deeply unpopular with the general population.

Finance minister Wouter Bos said he was 'very happy' the deal has finally been given parliamentary approval. 'It has not been an easy process but iceland deserves a compliment for meeting its responsibilities,' he was quoted as saying by news agency ANP.

© DutchNews.nl

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