Iceland faces opposition on Icesave payouts
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The Icelandic government is facing pressure to scrap plans to repay funds lost by foreign investors when the island’s banks collapsed.
Around a quarter of Iceland’s voters signed a petition urging the president Olafur Ragnar Grimsson to call a referendum over the repayment of over £3bn.
A deal would see Britain recoup £2.3bn for losses suffered by around 300,000 clients of Icesave, the subsidiary of nationalised Landsbanki.
Iceland’s parliament has already approved the plans to reimburse £3.4bn lost by Dutch and British savers when the Icesave scheme failed in 2008.
One of the petition’s organisers Magnus Arni Skulason told the BBC: “The interest rate on the Icesave agreement for Iceland is like running the National Health Service of Iceland for six months.”
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