Iceland says a deal with Britain and Netherlands is near, over savings accounts frozen when its banks failed.
Prime Minister Johanna Sigurdardottir said agreement is being negotiated on the Icesave accounts of Landsbanki, which collapsed with other main Icelandic banks in October.
The BBC reports the deal would give Iceland seven years to reimburse the frozen savings.
Total debt owed on the accounts is estimated at about 640 billion Icelandic crowns ($US5.28 billion).
Ms Sigurdardottir said the money would be repaid at 5.5% interest.
Assets of Landsbanki in Brtain will cover "most of" the debt.
