Iceland, Britain and the Netherlands are due next week to discuss how Reykjavik is to repay 5.4 billion dollars to British and Dutch savers after the collapse of an Icelandic bank, dpa cited 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. 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. Parliament voted for a referendum, to be held on March 6, following a protest in which over 61,000 people - or a quarter of the north Atlantic nation's electorate - signed a petition against the compensation deal. In recent weeks ministers from the three countries as well as Icelandic lawmakers have met to discuss the Icesave repayment plan. The latest, between the foreign minister of Iceland and his British counterpart, took place on Wednesday. Complaining that Iceland is 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.
