Iceland PM defuses bank row
Iceland's PM has sought to draw a line under the spat with Gordon Brown by insisting they are now working together to deal with the banking crisis.
Geir Haarde said he was cooperating "amicably" with the UK, and said his country would "honour its obligations".
Mr Haarde spoke as Treasury officials arrived in Reykjavik for talks over the dispute involving £1bn of money from British local councils and charities.