Treasury Minister Allan Bell has been defending his plan to help depositors with collapsed bank Kaupthing Singer and Friedlander.

He faced questions from MHKs in the House of Keys this morning about a scheme to use public money and funds from banks to pay back small depositors earlier.

Many Keys members were unhappy over the proposals, which still need to be agreed by the liquidator, depositors and courts.

Mr Bell said he was working as hard as he could to find a solution which could be agreed by all parties.

He told members:

"We are having to deal with a vast array of disparate issues and interests to come to a conclusion which I hope will be in the best interests of depositors.

"That is absolutely at the forefront of our deliberations and will continue to remain so until we get the solution which I hope everyone ultimately will see as the best deal we could develop in the best interests of the depositors themselves."