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Iceland to pay back Icesave cash | Iceland to pay back Icesave cash |
(11 minutes later) | |
The Icelandic parliament has voted in favour of repaying more than $5bn (£3bn) to the governments of the UK and the Netherlands. | The Icelandic parliament has voted in favour of repaying more than $5bn (£3bn) to the governments of the UK and the Netherlands. |
The so-called Icesave bill will reimburse funds paid by the governments to compensate those who lost money in the Icelandic online bank Icesave. | |
About 400,000 savers lost money in the high-interest accounts when its parent company Landsbanki collapsed last year. | |
The money will be paid in instalments over the next 15 years. | The money will be paid in instalments over the next 15 years. |
The deal was agreed in June, but was only passed after an amendment was added setting a limit on the payments. | The deal was agreed in June, but was only passed after an amendment was added setting a limit on the payments. |
'Controversial bill' | 'Controversial bill' |
In the vote, 34 members voted in favour, 14 voted against and there were 14 abstentions. | |
The government hopes that the agreement to make payments to Britain and the Netherlands will help it to get more financial aid. | The government hopes that the agreement to make payments to Britain and the Netherlands will help it to get more financial aid. |
The bill has been controversial in Iceland, where some members of parliament have questioned why the government should be paying the debts of a private bank. | |
There is particular anger at the UK for using anti-terror laws to freeze Icelandic assets. | There is particular anger at the UK for using anti-terror laws to freeze Icelandic assets. |
The problems stemmed from Iceland having to take over its three biggest banks. | The problems stemmed from Iceland having to take over its three biggest banks. |
First to lose independence was First Glitnir, closely followed by Landsbanki, which owns Icesave. | |
Finally, Iceland's biggest bank, Kaupthing, was nationalised in October. | Finally, Iceland's biggest bank, Kaupthing, was nationalised in October. |
Iceland's government blamed UK Chancellor Alistair Darling for undermining confidence in Kaupthing by using anti-terrorism laws to seize Landsbanki's UK assets. | Iceland's government blamed UK Chancellor Alistair Darling for undermining confidence in Kaupthing by using anti-terrorism laws to seize Landsbanki's UK assets. |