UK set to get Icesave money back

Iceland has said the UK will get back the money it paid out to customers when the Nordic country’s banking system collapsed.

Iceland President Olafur Ragnar Grimsson said the UK and the Netherlands will get back the 4bn euros (£3.5bn) they paid out in reimbursements to 40,000 citizens when Landsbanki collapsed in 2008, reports the BBC.

Landsbanki operated savings accounts in the UK and the Netherlands under the name Icesave.

Despite Iceland rejecting the latest repayment plan in a referendum at  the weekend - the second time the country has rejected a deal - Grimsson told the BBC assets from the collapsed bank Landsbanki would "in all likelihood" cover what was owed.

Iceland was one of the first casualties of the financial crisis which rocked world economies in 2008.