UK Insists Further Negotiations on Compensation

UK insists a new round of negotiations with Iceland government to repay Britain savers' losses in the Icesave bank collapse with a flexible solution

UK insists a new round of negotiations with Iceland government to repay Britain savers' losses in the Icesave bank collapse with a flexible solution, UK Treasury said on Mar.7, Xinhuanet reported.

"The U.K. remains committed to reaching a final agreement with Iceland in due course. The result of the referendum is a matter for Iceland," a Treasury spokesman said.

The government held a referendum on Mar.6 and more than 90 percent of Iceland citizens voted against the controversial repayment deal, which sets the terms of repaying the UK and the Netherlands billions lost by their savers in Iceland's banking collapse.

However, Iceland government claimed before that the result of the referendum on the Icesave law had no impact on government work and a new round of negotiations with the two countries would soon start.

Iceland's top banks failed in the last quarter of 2008 during the global financial crunch. Millions of savers in Britain and the Netherlands had deposits with the collapsed banks. The two countries had to compensate the savers and since then have demanded their money back.