Iceland was Sunday considering a new proposal on terms for how Reykjavik is to repay 5.4 billion dollars to British and Dutch investors after the collapse of an Icelandic bank. The British and Dutch governments had initially stepped in to compensate their own citizens who lost money when Icesave bank, an arm of the Landsbanki lender, collapsed in the autumn of 2008, dpa reported. "This will lower our payments significantly so this is an offer that we can work with," Prime Minister Johanna Sigurdardottir told public broadcaster RUV of the new proposal. Although Reykjavik had agreed to repay the money, the countries have since disagreed on the terms of the deal and the plan has divided Icelanders. Officials from the three countries have in recent weeks discussed the terms but details have not been disclosed. A referendum on the compensation plan is scheduled for March 6. Parliament approved the compensation deal in December, but the president refused to sign the bill into law and called a referendum following a protest in which over 61,000 people - or a quarter of the electorate - signed a petition against the deal. 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 applied for membership in July.
