Iceland to repay lost deposit money

Iceland has agreed to a new deal to repay the UK and the Netherlands billions of pounds of deposits lost when the island&rsquo;s banks collapsed in 2008, paving the way for new aid from international lenders.<br /><br />Iceland passed a law in August to repay money lost in high-interest Icesave accounts, but the UK and the Netherlands balked at the terms and held up aid from the International Monetary Fund (IMF) and other lenders for the island&rsquo;s stricken economy.<br /><br />Prime Minister Johanna Sigurdardottir said the new deal would allow Iceland to remove currency restrictions, ease interest rates and get international financial aid flowing into the stricken economy again.