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Iceland Said Unlikely to Accept $2.7 Billion Creditor Deal

  • Not much time left for creditors to complete deals, PM says
  • Some creditors making better progress than others, PM says
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Iceland is unlikely to accept the latest offer from bank creditor groups trying to withdraw their claims from the island without incurring an exit tax.

That’s according to two officials close to the matter, who asked not to be identified by name because the talks are private. The 334 billion kronur ($2.7 billion) put forward by committees representing creditors in Kaupthing, Glitnir and LBI is still too far off the combined $3.8 billion the government is using in its calculations, the people said. Policy makers may be willing to accept a smaller amount if other terms are agreed on, they said, without elaborating.