The UK government has received £1.36bn from the Iceland bank Icesave.
The Treasury says it now has 85% of the money the UK paid out in compensation to those savers who lost money with the bank went bust in 2008.
Some 230,000 people in the UK put their money into Icesave, the online savings account of the Landsbanki bank. But when the bank flatlined, the Icelandic government refused to provide compensation.
The then Chancellor, Alistair Darling, rode to the rescue with £4.5bn of taxpayer money to make up for the shortfall and avoid a run on banks.
Since 2011, the Government has been gradually retrieving funds from the Landsbanki estate. The latest payment was the fifth.
A Treasury spokesperson said it was committed to retrieving the entire amount from the estate.
