Iceland has agreed to pay back the money put up by the Netherlands and the United Kingdom to compensate their nationals who saved with a bankrupted Icelandic internet bank. The internet bank Icesave, a subsidiary of Landsbanki, attracted savers with high interest rates. However the triple A rated bank went bankrupt in October 2008.

Dutch Finance Minister Jan Kees de Jager wrote on Thursday to parliament that negotiators from the three countries have agreed that Iceland will pay back 1.3 billion euros. An earlier agreement failed after Icelanders rejected the deal in a referendum in March.

Iceland will pay the Netherlands a fixed interest rate of three percent. Payments will begin in July 2016 and will be completed in 2046. The annual amount paid will be the equivalent of five percent of Iceland's government income over the previous year. Any outstanding amounts will be passed on to the next year. The annual amount may not go below 1.3 percent of Iceland's gross national product.

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