British officials travel to Iceland to discuss banking crisis
Officials of the British Treasury are travelling to Iceland Friday to discuss a solution to the growing crisis of British deposits and investments locked up in nationalized Icelandic banks, the British government said.
The Icelandic move to take the country's main banks into public ownership has meant that British private savings and investments are blocked in accounts of Icelandic bank subsidiaries in Britain, reported dpa.
It has sparked sharp exchanges between British Prime Minister Gordon Brown and his Icelandic counterpart, Geir Haarde.
On Thursday it emerged that 850 million pounds (1.4 billion dollars) of public sector investments by local councils, including the police and transport bodies, could be affected.
The British government has moved to freeze Icelandic assets, using anti-terrorism laws. Haarde described the move as "unpleasant."
In sharp exchanges Thursday, a clearly angry Brown called the Icelandic moves "effectively illegal" and said all steps would be taken to get the money back, including taking legal action.