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£4bn Icelandic assets seized

The Government has seized £4bn in Icelandic assets - more than enough to pay back British savers caught up in the country's banking collapse.

The cash is understood to have been frozen using anti-terror laws. It had been feared UK councils, charities and individuals could lose up to £3bn.

The assets will not be released until a deal has been struck with Iceland's authorities to return British money.

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