Iceland says no to Icesave repayment dealReferendum decides against repaying UK and Holland
11 April 2011
The Icelandic people have voted against the latest deal to repay the UK and the Netherlands following the collapse of the country's banking system in 2008.
The UK and Dutch governments have threatened court action against Iceland in a bid to reclaim money lost following the failure of Landsbanki in 2008. The collapse meant that the UK and Dutch governments stepped in to bail out £3.5billion of lost savings across 400,000 depositors. Landsbanki's Icesave brand offered savers market-leading interest rates before its collapse.
The UK and Dutch governments insist that Iceland is obliged to repay this money, however Icelandic opposition to the deal argues that their taxpayers shouldn't have to pay for the mistakes of a private company.
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