Iceland wants to reopen talks with Britain and the Netherlands on a new plan to compensate them for having reimbursed British and Dutch clients who lost money after the failure of the Icesave bank.

President Olafur Rganar Grimsson recently refused to sign a law that would pay the British and Dutch government 3.8 billion euros in compensation. A referendum is to be held on the issue as a result. Prime Minister Johanna Sigurdardottir opposes the referendum and instead wants to negotiate more favourable terms.

The Dutch finance ministry says it has had no official notification from Iceland's government. But it emphatically rules out any new talks. London has not yet reacted. The rejection of the law that was to regulate the compensation payment has prompted the International Monetary Fund to delay a loan worth billions of euros.

(Foto: Flickr/roel1943)