The government introduced an agreement with the bank’s resolution committee at a press conference today which was held in the National Theatre in the capital city of Reykjavik. Bank obligees will discuss the new agreement but hopes are rather high that they will accept this agreement. Read the full story

In an answer from the British PM office it’s said that Mr. Brown was referring to the agreement between the Icelandic Government and the IMF in regards of the Icesave accounts. In Gordon’s response it’s said that the British Government celebrated Iceland’s agreement with the IMF and that the Icelandic government said they would be paying British Icesavers back.

The two governments have not reached a final conclusion on how this is to be done. The British Government recognised local responsibility in regards of the Icelandic owned British bank Kaupthing Singer and Friedlander.

Local media RUV.is reports

The use of terrorist laws against Iceland has been criticised by a UK Parliament committee that is looking into how the British government reacted, using controversial terrorist laws against Iceland.
“If this is as is being reported, then it’s the one positive aspect of the whole affair,” Says Arni Mathiesen former Icelandic Finance Minister. “This however helps us (Iceland) very little as the action has been taken,” he continues. Mr. Mathiesen says that this is a strong indication that the British Government played a greater role in the fall of the Icelandic banks than earlier assumed. Read the full story

Kaupthing Bank has now confirmed that it will pursue a legal challenge against the British government for forcing its UK subsidiary Kaupthing Singer & Friedlander into administration. Read the full story

Talks have started in Reykjavik about the fate of the UK’s Icesave savers and the Icelandic government is apparently willing to meet the obligations the British government is asking for. There is a great deal at stake for both countries, but both remain hopeful for a positive outcome. Read the full story