"The agreement provides that the Icelandic government will compensate each Dutch investor to the tune of 20,887 euros maximum. The Dutch government will (turn) a loan to Iceland enabling such restitution and the Central Bank of the Netherlands is responsible for settle claims, "the text drafted jointly by both parties.
"The finance minister Icelandic Arni M. Mathiesen and his Dutch counterpart are pleased to have found a solution," added the press release, noting that the litigation is now "settled".
The Netherlands had already announced this week they would guarantee up to 100,000 euros savings Dutch clients of the bank online Icesave, a subsidiary of the Icelandic Landsbanki controlled by the state since Tuesday.
In the British part, "significant progress was made on investors Icesave with agreements in principle for a repayment," according to a joint statement.
"The delegations will continue in the coming days to work on problems," the same press release, assuring that "the delegations of Iceland and the United Kingdom met (Saturday) in Reykjavik in a friendly atmosphere ( ...) With the aim of finding a solution satisfying both parties on the problems. "
After strong criticism from British Prime Minister Gordon Brown, who had described the attitude of Reykjavik "totally unacceptable", London Friday sent a delegation to Iceland to find a solution through diplomatic channels to the banking crisis between the two countries.
Faced with these advances, the delegation left Reykjavik Saturday afternoon.
Since Tuesday, customers of British bank Icesave have more access to their bank account. According to British media, more than 300,000 Britons hold an account for a total estimated at 5.1 billion euros.
These ads clarify a bit of heaven Nordic country even though the Belgian Prime Minister Yves Leterme wrote to his Luxembourg counterpart Jean-Claude Juncker to plead the cause of Belgian customers of the Luxembourg subsidiary of Kaupthing, the largest bank in Iceland, whose assets are being frozen.
Iceland is terraced by the international financial crisis that shook a few days the whole banking system.
In one week, it fell status rich nation to economic success insolent than wretched country to the brink of bankruptcy.
Faced with a bloated financial sector (eight to ten times GDP) now cut off from foreign capital, the government has chosen the method strong, even dirigiste.
Equipped advance of legal precedent in Europe without giving the state the opportunity to lead the whole banking sector, he announced or taken control of three major banks in the country: Glitnir, Landsbanki, Kaupthing finally, causing stupor in the business and complete loss of confidence in the economy of the Nordic countries.
He also called for help Moscow with whom he must negotiate Tuesday to grant a loan of 4 billion euros.
Iceland, an island of 313,000 inhabitants and is not a member of the European Union, was previously one of the richest states of the Organization for Economic Cooperation and Development (OECD).
Over the past 10 years, growth has risen by an average of 4% per year with a peak of 7.7% in 2004.( Finance Information City )
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