Good progress with Icesave but no end in sight just yet

Despite some claims to the contrary, there has not yet been any new deal agreed in the ongoing Icesave dispute between Iceland, the Netherlands and the United Kingdom. The talks are, however, said to be going very well.

It was reported yesterday evening that a new draft of a deal had been agreed to the satisfaction of all sides; but RUV reports that is not yet true. There is good progress though and a draft has been presented to interested parties for consideration before the three sides agree on amendments or to send it to their national governments.

According to Icelandic finance ministry spokesman Rosa Bjork Brynjolfsdottir, there is a good atmosphere at the negotiating table and excellent communication between the three sides.

Icelandic Minister of Finance Steingrimur J. Sigfusson is currently in Brussels working with the country’s EU accession committee. He would not be drawn to comment publicly on the current state of Icesave negotiations. Sources within the ministry hope that Icesave can be completely put to bed in the coming few weeks.

According to the Confederation of Icelandic Employers, an NGO which has received a copy of the new draft agreement, the deal currently on the table will see the Icelandic state burdened with a much smaller bill than previously feared – likely around ISK 60 billion (USD 530.7 million). The likely interest rate on the trilateral loan is said to be in the region of three percent, with a nine-month interest free payment break.

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