Iceland Approves Icesave Compensation Deal

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Iceland's parliament approved an amendment bill on Wednesday to repay $5.4 billion to the British and Dutch governments for compensating more than 320,000 of their savers when the Icesave online bank failed, reports said.

Lawmakers approved the measure by a vote of 33 to 30, with the issue seen as crucial to Iceland's bid to join the European Union and get its economy back on track.

"Approving the bill is the better option and will avoid even more economic damage," Finance Minister Steingrimur Sigfusson said during the debate.

"History will show that we are doing the right thing."

The Icesave compensation is highly unpopular among the Icelandic population, with critics pointing out that the compensation package means that each one of the country's 320,000 citizens effectively faces a EUR 12,000 debt.

Iceland's parliament approved an amendment bill on Wednesday to repay $5.4 billion to the British and Dutch governments for compensating more than 320,000 of their savers when the Icesave online bank failed, reports said. (Market News Provided by RTTNews)