By Darren Ennis
BRUSSELS, Oct 16 (Reuters) - Iceland's government will present a new draft law "very soon" on reimbursing Britain and the Netherlands for deposits lost when its banks collapsed last year, Iceland's foreign minister said on Friday.
Ossur Skarphedinsson told Reuters he was very hopeful the new bill, which addresses reimbursement of more than $5 billion lost in Landsbanki's Icesave accounts, will receive support in parliament to allow talks to resume with London and Amsterdam on resolving the dispute.
"I think it will be necessary to put a new bill to parliament. My judgment today is that we are in the last metres and we should come forward very soon with a new bill," he told Reuters by telephone.
"I don't expect it to be a very long time until we reach a conclusion that we can take it to parliament," he said.
"I am also very hopeful that this resolution will be acceptable to the parliament."
A deal with Britain and the Netherlands is key if Iceland is to receive further aid and loans from the International Monetary Fund (IMF) and some European countries. The row also looms large over Iceland's negotiations to join the European Union.
AMENDMENTS
Iceland struck a deal with the two countries in June but the agreement, widely reviled among Icelanders, gained support in parliament only after amendments were added putting limits on the potential repayment and setting a 2024 expiry date.
London or Amsterdam have not endorsed the amendments, leaving the Icelandic government with the task of finding a solution palatable to both parliament and creditors.
"The final product is not yet on the table, but I am hopeful we will start negotiations (with Britain and the Netherlands) based on a new bill very soon. We are working very hard on a solution," Skarphedinsson said.
A junior minister has already resigned from the government over the issue, raising concerns that the coalition might founder over the Icesave issue. Social Democrat Prime Minister Johanna Sigurdardottir has dismissed such talk. [ID:nLU220558]