The Icelandic parliament has voted in favour of paying back the money lost by savers when internet bank Icesave fell in October 2008. Finance Minister Wouter Bos says he is "extremely pleased" with the decision.

More than 300,000 savers in the Netherlands and Great Britain saw their savings melt away together with the demise of the high-interest virtual bank.

Reykjavik has agreed to pay back the total sum of 3.8 billion euros, 1.3 billion will go to the Netherlands.

Icesave, a subsidiary of Landsbanki bank, was one of the first banks to fall at the beginning of the world economic crisis. Dutch savers were able to retrieve up to 100,000 euros of their savings as their accounts were guaranteed by the Dutch government.