Iceland agrees deal with UK over Icesave

ICELAND has reached a deal with the British and Dutch governments to reimburse them for compensating savers who lost money in the collapse of Icesave bank, the Icelandic government said yesterday.<br /><br />&ldquo;An understanding has been reached with the UK and the Netherlands,&rdquo; a statement from Prime Minister Johanna Sigurdardottir&rsquo;s office said.<br /><br />Iceland&rsquo;s parliament approved in August a controversial deal to pay back 3.8 bn euros (&pound;3.5bn) to the British and Dutch governments for the compensation they paid to savers from the UK and the Netherlands.