The UK crisis caused by the recently-announced insolvency of Icelandic online savings service provider Icesave is to be solved via joint efforts from both countries' governments, as Iceland's Prime Minister stepped in to announce that his government is to take several steps to ensure UK savers who have been cut off from their funds are to be reimbursed.

Icesave, the online savings service owned by the now collapsed Icelandic bank Landsbanki, suspended all its online deposits and withdrawals on 7 October, prompting Iceland’s government to initially announce it does not intend to compensate the estimated 300,000 British savers who had entrusted their funds to Icesave.

However, the Nordic country’s government did pass a series of laws to consolidate depositors’ position by granting them priority when allocating assets and in the wake of Britain’s threat of suing Iceland to recoup the money, announced that Landsbanki’s total assets would probably be sufficient to cover the Icesave deposits. Meanwhile, the British government also guaranteed all customer deposits at Icesave, even those which exceeded the UK standard protection plan amount of GBP 50,000.