Economy: Iceland and EU reach agreement on frozen Icelandic accounts

Iceland has reached agreement with some European Union members on guarantees for deposits held by foreigners in frozen Icelandic accounts.

According to the new agreement, the government will cover deposits of insured depositors in Ice save accounts in accordance with European Economic Area (EEA) law. The agreement also entailed that the EU would continue to help Iceland, not a member of the EU, restore its financial system and economy.

In a statement posted on its website the Icelandic government said Talks between Iceland and several EU member states, initiated by France, which has the rotating presidency of EU, led to a common understanding that would form the basis for further negotiations, .

The government also said it has agreed to facilitate financial assistance for Iceland, including agreement on a stabilization package from the International Monetary Fund (IMF).

Published by Mike Hitchen, mikehitchenconsulting.com
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