The Netherlands and Iceland have reached a deal on guarantees for the 120,000 Dutch clients of internet bank Icesave.
Iceland has now agreed to pay up the first €20,887 to savers, while the Netherlands will guarantee the rest, up to a maximum of €100,000.
According to publics broadcaster Nos, the Netherlands is lending the Icelandic authorities money to make the payments.
Dutch clients have five months to make a claim and the payout will take another three months, news agency ANP reports.
Dutch savers have put some €1.6bn into Icesave since it launched in Netherlands in May, offering very high interest rates.
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