Iceland's parliament is close to approving the repayment of nearly €4bn ($6bn, £3.4bn) lost by British and Dutch savers in a failed Icelandic bank – but with a series of conditions that could yet cause the pact to unravel.
The compromise legislation, expected to be published today, aims to end a two-month impasse since Iceland's government struck a provisional deal with the UK and the Netherlands on the compensation.
The bill is considered crucial to secure additional billions of euros of international support for Iceland's shattered economy and to clear the way for talks on its application to join the European Union.
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