The Hungarian government has agreed to a multi-million pound settlement to provide reparations to Holocaust survivors living abroad, ending a year-long dispute.

The deal, announced on last weekend, will initially release $5.6m (£3.76m) to the Conference on Jewish Material Claims Against Germany, which distributes restitution payments.

The Hungarian government had refused to renew the previous $21 million (£14.1 million) deal after it expired last year, citing allegations of improper accounting by the Claims Conference, which the organisation has denied.

Minister of State Janos Lázár said that Hungary has enlisted the help of multinational auditing firm KPMG to ensure the transfer of funds goes smoothly.

Mr Lázár also spoke of his relief that “Holocaust survivors of Hungarian origin living abroad will be able to receive as soon as possible the compensation to which they are entitled.”