Iceland to change Dutch repayment plan

The Icelandic parliament wants to amend the agreement drawn up between the Dutch and Icelandic governments for the repayment of a loan to pay off people who lost money when internet bank Icesave collapsed.

A parliamentary commission says the €1.3bn loan should now be paid off when the Icelandic economy allows, rather than over the next 15 years. Britain has a similar arrangement for a €2.7bn loan.
The commission says the interest and lump sum payments should not be more than 6% of gross domestic product, according to Nos tv.
Parliament is expected to vote on the plan later this week.
The compensation agreement, worked out between the Dutch and Icelandic governments earlier this year, included a commitment from Iceland to pay savers up to €20,887. The Netherlands guaranteed the rest, up to a maximum of €100,000. The Netherlands lent the money to Iceland because it had been hit hard by the financial crisis.
According to Icelandic news website Icenews.ns, Iceland is confident the Dutch and British authorities will agree with the new plan.
The Volkskrant reports that the finance ministry will only comment on the new proposal once it has been approved by parliament.

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