Iceland has reached agreement with the Dutch and British governments about the repayment of money handed out to the residents of those countries who lost their savings when the Icelandic bank Icesave collapsed. The news was reported by the Icelandic newspaper Morgunbladid.

Although Iceland agreed several months ago to repay the 3.8 billion euros paid out by both countries, it had reservations about the conditions attached. Prime Minister Jóhanna Sigurdardóttir wanted the repayments to be carried out until 2024, at which point they would expire, whether they had been completed or not.

Morgunbladid says Iceland’s guarantee will now not expire in 2024 and that the country will continue to make payments until the debt is paid in full. The Icelandic government was forced to change its mind on repayment, because otherwise it would not have been unable to talk to the International Monetary Fund and other credit suppliers about a solution to its economic problems.

The compensation for Dutch and British savers has sparked fierce criticisms from the Icelandic population, who believe they are having to pay for Icesave’s mismanagement.

Photo of Landsbanki offices from Wikimedia Commons