Iceland seeks debt mediator

Published on Sunday 24 January 2010 22:22

ICELAND has approached several governments about the possibility of mediating talks on more than £3.1 billion owed to Britain and the Netherlands.

Reports this weekend indicate Norway is the most likely candidate for such a role. Oslo is seen as sympathetic to Iceland's plight and mediated between London and Reykjavik in the 1970s "cod wars" over fishing rights.

Iceland owes the British and Dutch governments the money for losses related to the collapse of Icesave online bank accounts in late 2008, but repayment terms have yet to be settled.

No-one at the Icelandic foreign ministry would confirm the move yesterday, but earlier this month Iceland's president refused to sign a law setting out the terms, forcing a referendum on the issue and holding up international aid which is vital for recovery in Iceland's stricken economy.