Unravelling Iceland's mess
Updated on 10 October 2008
Diplomatic war with Iceland cools as both London and Reykjavik near a deal to pay out those who have suffered financial loss, the details are vague but we have the latest.
The government is hopeful there will be a solution in its row with Iceland over billions of pounds invested by British depositors in banks that have collapsed.
It's talking up the prospect of a breakthrough this weekend - as a treasury delegation meets its Icelandic counterparts in Reykjavik.
John Sparks spoke to Iceland's prime minister, Geir Haarde, in the Icelandic capital, Reykjavik. He started by asking him if he could guarantee people would get their money back.
