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Iceland agrees to repay €4bn to UK and Netherlands in Icesave deal

British and Dutch governments were compelled to extend the loan to Iceland to bail out local account

Iceland has agreed to pay back the estimated 4bn euros (£3.4bn) borrowed from the UK and the Netherlands in the wake of collapse of the online bank Icesave at the height of the financial crisis two years ago.

The British and Dutch governments were compelled to extend the loan to Iceland to bail out local account holders with the online bank after its parent company, Landsbanki, failed in October 2008.

The new deal involves full reimbursement to the UK and Dutch governments whereby Iceland will pay a fixed interest rate of 3 per cent on the money owed to the Netherlands and 3.3 per cent on the money owed to the UK. As a result, the UK will get back the £2.3bn owed by Reykjavik.

Payments are scheduled to begin in July 2016 and must be completed by 2046.

The UK Treasury welcomed the deal, saying, "Mutually satisfactory closure of this issue will mark a new chapter in UK-Iceland relations."

Chancellor of the Exchequer George Osborne said, "I think this has led to a much more constructive relationship between the Icelandic government and the British Government, which was pretty glacial, frankly."

The actual deal has not been signed as the terms of the agreement must first be approved by Iceland's parliament and president. There is little chance, however, of it not getting assent.

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We're hiring! Join the New Statesman as an editorial assistant

The NS is looking for a new recruit.

The New Statesman is hiring an editorial assistant, who will work across the website and magazine to help the office run smoothly. The ideal candidate will have excellent language skills, a passion for journalism, and the ability to work quickly and confidently under pressure.

The job is a broad one – you will need to understand the requirements of both halves of the magazine (politics and culture) as well as having an interest in the technical requirements of magazine and website production. Experience with podcasts and social media would be helpful.

The right person will have omnivorous reading habits and the ability to assimilate new topics at speed. You will be expected to help out with administration tasks around the office, so you must be willing to take direction and get involved with unglamorous tasks. There will be opportunities to write, but this will not form the main part of the job. (Our current editorial assistant is now moving on to a writing post.)

This is a full-time paid job, which would suit a recent graduate or someone who is looking for an entry into journalism. On the job training and help with career development will be offered.

Please apply with an email to Stephen Bush (Stephen. Bush @ with the subject line ‘Editorial Assistant application’.  

In your covering letter, please include a 300-word analysis of the strengths and weaknesses of the New Statesman. Please also include 500 words on what you consider to be the most interesting trend in British politics, and your CV as a Word document. 

The deadline for applications is noon on Monday 12th October.