Iceland resumes bank collapse cash talks


Britain and Iceland have resumed talks aimed at settling a £2.3bn (€2.78bn) dispute over the collapsed Icesave bank, it was disclosed tonight.

The Icelandic Ministry of Finance said that it had met with representatives of the UK and the Netherlands – who also say that they are owed money – in the capital, Reykjavik, yesterday and today.

It is the first time the three sides have met since March when the talks collapsed after Icelanders voted to reject a deal to repay the British and Dutch governments for compensating their citizens who lost their deposits when Icesave collapsed in 2008.

British Foreign Secretary William Hague has signalled that Britain is prepared to block Iceland’s accession to the European Union unless the dispute is resolved.

The British Treasury tonight declined to comment on the latest talks.

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