Iceland to pay back UK over collapsed bank

Iceland has agreed to repay Britain and the Netherlands $5.7bn (€3.82bn) it borrowed to compensate savers who lost funds in the collapse of an Icelandic internet bank, the Reykjavik government said.

Prime Minister Johanna Sigurdardottir’s office said the three countries agreed on a repayment plan after her government overcame heavy domestic opposition to pass the programme through Iceland’s parliament in August.