'Iceland concluded agreements with several countries (to reimburse account holders' losses), and we think that Iceland must honour these agreements before getting assistance from the IMF,' minister Wouter Bos' spokesman Hendrieneke Bolhaar told AFP.

She said the Netherlands 'is in contact with several countries, including Germany and the United Kingdom' on this topic.

In an agreement signed between Iceland and the Netherlands after the crash of Icelandic bank Icesave in Oct, Reykjavik committed itself to reimbursing each Dutch client of the bank up to 20,887 euros (S$39,240).

The Dutch government would loan Iceland the money to make this possible.

Similar pacts were signed with other states whose citizens lost money in Icelandic banks that collapsed under the global financial crisis.

The country's three biggest banks were nationalised last month and the government has been forced to seek help abroad. On Friday, the European Union, of which Iceland is not a member, said it was ready to lend the country an unspecified amount of money.

Details of an agreement between Iceland and the IMF for a loan of two billion dollars are being finalised. -- AFP