The International Monetary Fund has cleared a further loan of $US160 million to Iceland.
The money is the latest tranche of $US2.1 billion from the agency to stave off Iceland's financial collapse.
But approval got caught in wrangling over claims for compensation for the collapse of the Icelandic bank Icesave.
In a referendum in March, voters in Iceland rejected a plan to pay 3.9 billion euros to Britain and the Netherlands.
The governments of Britain and the Netherlands bailed out savers in the online Icesave bank after its parent company, Landsbanki, collapsed in 2008.
The BBC reports the dispute has also overshadowed Iceland's application to join the European Union, which was submitted in July last year.
