Iceland's parliament has approved a controversial deal to pay back billions of euro lost by British and Dutch savers in the collapse of Icesave bank.
The deal provides for the payment of €3.8 billion by 2023 to the British and Dutch governments for the compensation they forked out to disgruntled savers.
Icesave, an online subsidiary of the Landsbanki bank which had to be rescued in October 2008, attracted more than 320,000 British and Dutch savers due to its high interest rates. But they lost their savings when accounts were frozen during last year's credit crunch.
Iceland's government had agreed a deal with Britain and the Netherlands in early June. But Icelanders became enraged by the so-called Icesave bill, fearful it could bankrupt the nation and angry at having to pay the debts in the first place.
After weeks of political jockeying, amendments were added to the bill setting a ceiling on the repayment based on the country's gross domestic product.
