Another round of formal Icesave talks to start

Formal discussions over the Icesave dispute between Iceland, the Netherlands and the United Kingdom have been scheduled for the beginning of September.

Icelandic officials confirmed the news to AFP news agency. The three countries have not met to work out a deal in the dispute since early in July. Those negotiations were held in Iceland. According to RUV there have been informal talks between the three countries in recent days and weeks and it has now been decided to hold more formal talks at the beginning of the month.

An agreement between the three countries has been reached twice. The first time, the Icelandic parliament voted to support the payment deal with amendments that the British and Dutch felt they could not accept; and the second deal was rejected in a national referendum held in Iceland this March.

Elections in the UK and the Netherlands have slowed down the process; but the EFTA has been putting pressure on the Icelandic side to strike a deal to pay back the two countries’ governments for money they spent bailing out savers in the failed Icesave bank accounts, run by Iceland’s Landsbanki.

It is still not clear how much of the Icesave money will be paid for by the sale of assets from Old Landsbanki. The problem mainly rests on interest rates and terms of any potential loan to Iceland; because it is hoped Landsbanki assets will eventually cover most of the debt after several years.

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