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October 17, 2021

Iceland rejects repayment deal

Icelanders have rejected the latest plan to repay the UK and Netherlands some 4bn euros lost when the country’s banking system collapsed in 2008, The BBC informs. Partial referendum results showed on Sunday 58 per cent voting no, and 42 per cent supporting the plan.
Johanna Sigurdardottir, Iceland’s Prime Minister, said the rejection meant “the worst option was chosen”.

UK Treasury minister Danny Alexander said the decision was “disappointing” and the matter would go to an international court.
Dutch Finance minister Jan Kees de Jager said he would be consulting Britain about taking further steps against Iceland, but added that the matter would likely end up in court.

“I am very disappointed that the Icesave agreement did not get through. This is not good for Iceland, nor for the Netherlands.
“The time for negotiations is over. Iceland remains obliged to repay. The issue is now for the courts to decide,” Mr de Jager said in a statement.
It is the second time a referendum has rejected a repayment deal.

Iceland’s Landsbanki bank ran savings accounts in the UK and Netherlands under the name Icesave and investors there lost 4bn euros (£3.5bn; $5.8bn). When it collapsed in 2008, the British and Dutch governments had to reimburse 400,000 citizens – and Iceland had to decide how to repay that money.

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