Iceland GDP up 1.2pc

ICELAND registered its first positive quarterly economic figures and outlined that it is close to discussions over repayments of nearly €4bn over its failed bank.

The country was one of the first victims of the global financial crisis and suffered when its Icesave online bank crashed two years ago.

But gross domestic product grew by 1.2pc on a seasonally adjusted basis in the third quarter, compared with the previous three months, driven by an increase in domestic consumption.

Reykjavik said it expected to announce "within days" a fresh deal with Britain and the Netherlands over repayment of nearly €4bn lost in the failed Icesave online bank.