The UK government has gained extra leverage in its efforts to ensure that British savers with deposit accounts in crisis-hit Icelandic banks receive all their money back.

The European Commission confirmed yesterday that Iceland’s Prime Minister Geir Haarde has formally written to Commission President, Jose Manuel Barroso, asking for macro-financial assistance to help the country’s economy.

The Commission has indicated that it is ready to grant the request, but first it is insisting that all bilateral disputes over the status of funds held by foreigners be settled.  10-Nov-08.

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5125565.ece