Saturday, 6 June 2009 13:09 UK
There is very good news from Reykjavik. Iceland is going to pay the £2.3bn back to the British and Dutch government. There were big tensions and worries between the United Kingdom and Iceland, since last year. This was because the Icelandic banking system was owned by the state and controlled by the government. This caused big problems because de depositors who saved their money on Icesave were affected. But now even Iceland says that they also will pay the plus interest. According to a Treasury spokesman this is not only good news for the taxpayers in the United kingdom but for Iceland as well.
This certainly is good news for the United Kingdom as for The Netherlands. The bank was a topical subject in the news last year. There were a lot of people who held accounts there. Not only in Britain but also in Holland. The bank collapsed because of the financial crisis. I think this step is positive and it will be a good solution for the tensions between Reykjavik and London. After long waiting the depositors will finally get their money back, but I wonder how long the local authorities and bodies have to wait before they get their money back. A year? Maybe two? Or longer?