Iceland passes Bill to restore lost savings to stung Britons

Iceland's parliament this afternoon finally voted through the deal that will see the country repay Britain and Holland for the $5 billion (£3.1 billion) lost by savers in Icelandic deposit accounts.

The British Government had to step in with British taxpayers' money to reimburse those who lost out when their Icelandic banks went bust. In June, Iceland agreed to repay the money but the so-called Icesave Bill ran into huge controversy in the tiny country.

Icelanders were furious that Britain used laws designed to catch terrorists in order to seize the banks' assets and were deeply concerned that repaying the money owed would bankrupt the nation.

Iceland's government told citizens it had little choice but to make good the debts if it wanted to ensure continued financial help. Amendments have now been made to the Bill including a cap on the repayments which will be based on the state of the country's economy.

Today's passing of the Bill is seen as paving the way for Iceland to receive further international aid for its stricken economy.