Iceland said on Sunday that it has reached a deal with the Netherlands, Britain and other European countries on to repay hundreds of thousands of savers whose money is frozen in Icelandic bank accounts.

A conflict between Holland, Britain and Iceland over how the money would be reimbursed has led to delays in the approval of a €4.8bn aid package for crisis-hit Iceland.
Details of the weekend’s deal have not been released.
Earlier, the Netherlands had reached an agreement with Reykjavik on paying back 120,000 Dutch savers who have put a total €1.6bn into the internet bank Icesave.
Some €20,800 was to be paid by Iceland with the rest – up to €100,000 –coming from the Dutch government. The Netherlands was prepared to lend Iceland €1.3bn to make its Dutch repayments.
But at the end of last week it appeared that Iceland was not going to honour this agreement and would instead force savers to go to court to recover their money.
Obligations
The Dutch finance ministry told news agency ANP on Sunday that Iceland’s statement means the country recognises it has obligations to small savers all over Europe.
At the same time, the EU recognises that Iceland is in a difficult financial situation and needs help to repay the loans, the ministry said.
‘We expect this agreement can now be speedily put into place and there will soon be clarity on when people will get their money back,’ a finance ministry spokeswoman was quoted as saying.
The spokeswoman said it is not clear if people with more than €100,000 in Icesave would get all of their money back. ‘First we have to ensure everyone gets the €20,800. Then we will look at the rest,’ she said.