After weeks of debate, the Icelandic parliament has passed a law which legislates on the repayment of 1.3 billion euros to the Dutch state. As a result, the "Icesave act" is subject to a number of conditions.

The Dutch government compensated Dutch savers after their money evapourated when Icelandic internet bank Icesave went bankrupt last year. Dutch Finance Minister Wouter Bos says he is pleased with the new legislation as it brings the Netherlands a step closer to getting its money back.

Many Icelanders fear they are having to pay for the bank's bankruptcy. The act has now been amended to link payments to the development of the Icelandic economy. Consequently interest and payments will not be higher than 6 percent of the gross national product and payments will end after 2023.

Iceland also has to pay 2.5 billion euros back to Great Britain. A total of 320,000 Dutch and British people lost their savings.

Icesave was a subsidiary of Landsbanki, which went bankrupt as a result of the worldwide financial crisis last October.

Photo: Icesave webpage - flickr photos renier