Dutch, British and Icelandic government ministers will meet today to discuss the Icesave issue in an effort to resolve a dispute that threatens Iceland's finances and diplomatic relations.
Iceland government spokesman Einar Haraldsson said Iceland finance minister Steingrimur Sigfusso and British financial services minister Paul Myners would attend the talks.
But he tempered optimism by saying the meeting is only designed to exchange information.
"The meeting is surely not going to have any spectacular outcome, because the meeting is not defined that way, but maybe something about the way forward," Mr Haraldsson said.
Iceland owes Britain and the Netherlands almost €4 billion for money they used to compensate savers in Icesave, the online bank whose Icelandic parent Landsbanki failed in October 2008.
The last agreement reached by the three sides was vetoed by Iceland's president earlier this month, triggering a referendum scheduled for March 6th which opinions polls indicate has a strong chance of shooting down the previously agreed terms.
Dutch finance ministry spokesman Niels Redeker confirmed that Finance Minister Bos would attend the talks but did not say whether a mediating country was involved.
If the referendum fails, the Icelandic parliament will revert to an earlier version of the law which was rejected by the British and Dutch governments because of limits it places on repayment.
A rejection could further delay a solution to the Icesave issue, hold up a review of Iceland's economic aid programme with the International Monetary Fund and postpone the next tranche of aid money from a group of Nordic countries.
Reuters