Iceland’s prime minister has dismissed the chances of British and Dutch savers receiving much from a new $4.85 billion (€3.6 billion) lawsuit seeking compensation from money lost in Icesave funds during the 2008 economic crisis.

But Sigmundur David Gunnlaugsson said he was optimistic about a wider solution to a standoff between creditors of Iceland’s failed banks and the government over an estimated $3.4 billion worth of assets.

“I have been rather optimistic because in my opinion it is in everyone’s interest to find a solution,” Mr Gunnlaugsson said.

Of the lawsuit announced by Britain and the Netherlands, he added: "I wouldn't say we are concerned about this. It is unlikely they will get very much out of this because there is no state or government guarantee." – (Reuters)