Some good news for some of the hapless individuals who placed their life savings offshore in an unprotected environment.
Iceland's prime minister, Geir Haarde, said that an agreement had been reached (a 'common understanding') with EU member states that will see it cover savers' deposits in return for financial assistance, including agreeing on a stabilisation package from the International Monetary Fund (IMF).
The government of Iceland will "cover deposits of insured depositors in the Icesave accounts in accordance with EEA law."
I would express some words of caution here, before people start to pop open the champagne, until the money is back in a UK bank account don't bank on this happening.
As per the PM's website:
"talks between Iceland and several other EU member states, led to a common understanding that will form the basis for further negotiations".
This is not a done deal by any means.