REYKJAVIK (Reuters) - Iceland said on Sunday it had reached a deal with several European Union states on how to repay thousands of foreign savers with money in frozen Icelandic accounts, potentially unlocking billions of dollars in aid.

Conflicts over the accounts between Iceland, not a member of the EU, and EU states Britain and the Netherlands have been delaying an International Monetary Fund-led package worth as much as $6 billion for the crisis-hit country.

"According to the agreed guidelines, the government of Iceland will cover deposits of insured depositors in the Icesave accounts in accordance with EEA (European Economic Area) law," the Icelandic government said in a statement, saying this "common understanding" would form the basis for more talks.

An Icelandic government spokeswoman said EEA rules stipulate that retail and wholesale depositors would be entitled to the payout of roughly 20,000 euros ($25,370) per account.

Britain and the Netherlands have been frustrated by the situation for savers in their countries who had deposited money in the "Icesave" accounts of Landsbanki, one of the banks that crumbled during Iceland's financial meltdown.

Some 300,000 British savers -- roughly equivalent to the entire population of Iceland -- had accounts worth around 4 billion pounds ($5.9 billion) in Icesave, which attracted overseas customers with high interest rates.

A British Treasury spokesman said Britain welcomed any progress on unlocking the frozen accounts.

"The UK government has always supported an IMF loan to Iceland and welcomes any progress that would see resolution for British depositors and equal treatment for all creditors," the spokesman said.

Britain has already guaranteed all Britons with Icesave savings they will get all their money back and has started making payments through a compensation scheme.

BADLY NEEDED FUNDS

The Dutch finance ministry said last month it had reached an agreement in principle under which Iceland would reimburse Dutch savers for up to 20,887 euros ($26,490) per person for money deposited with Icesave.

The Netherlands said it would extend a loan of 1.3 billion euros to Iceland to make this possible. Dutch authorities would then compensate depositors for anything above that amount up to 100,000 euros.

As of Friday, a Dutch finance ministry spokeswoman said the legal documents to flesh out the memorandum of understanding had not been finalized.

Iceland said on Sunday the Icesave deal would allow for the "expeditious finalization" of talks over financial aid to allow the country to restore its financial system and economy.

Iceland faces a severe recession after the global financial crisis led to the collapse of its currency and the government takeover of three of its largest banks. It badly needs funds to revive currency trade and restart the economy.

There had been signs of a thaw over the past few days.

IMF Managing Director Dominique Strauss-Kahn told a news conference in Washington on Saturday that the lender would finalize a rescue package for Iceland on November 19.

Iceland, whose government has long opposed EU membership, has shown signs of warming to the idea of joining the 27-nation bloc to help avert future crises.

Iceland reached a provisional deal for a $2 billion IMF lifeline in October and other lenders, including the EU and Nordic neighbors, had indicated they could be willing to stump up cash once the IMF programme won official approval.

(Additional reporting by Tim Castle in London and Niclas Mika in Amsterdam, writing by Sarah Edmonds, editing by Keith Weir)

By Omar Valdimarsson

Publié le 16 novembre 2008 Copyright © 2008 Reuters