Icelandic and British authorities are about to reach an agreement on a GBP 3 billion (USD 5 billion, EUR 4 billion) loan so that Icelandic authorities can honor their obligations Icesave account holders in the UK, a subsidiary of Iceland’s Landsbanki, which has now been nationalized.
According to Morgunbladid, a delegation from the British Ministry of Finance will travel to Iceland shortly to discuss the terms of the loan. An agreement between British and Icelandic authorities in that regard is expected to be reached by the end of this week.
It is hoped that the move will help ease relations between the two nations, which have been rather tense since the collapse of the Icelandic banks. Iceland’s Prime Minister Geir H. Haarde announced last week that Iceland is preparing a lawsuit against British authorities.