Iceland's parliament is deadlocked over a controversial deal to reimburse the UK and the Netherlands for €3.9bn ($5.51bn, £3.34bn) of savings lost in a failed Icelandic bank.

Lawmakers had been expected to push towards a final vote on the accord this week after two months of fierce debate since Iceland's government reached agreement with London and The Hague.

But legislation to ratify the pact remained stuck in a parliamentary committee yesterday as the issue threatened to tear apart Iceland's coalition government and jeopardise international support for the country's economic recovery efforts.  11-Aug-09.

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