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Iceland rejects Icesave deal

Iceland has once again rejected a deal that would see the UK and the Netherlands reimbursed for money lost during the collapse of the country’s banking system in 2008.

Investors lost £3.5 billion when Iceland’s Landsbanki bank was unable to honour its ’Icesave’ saving accounts. UK and Dutch governments were forced to cover the losses of 400,000 citizens.

This second deal would have seen Iceland’s repayments to Britain come with a 3.3 per cent interest rate to the UK and 3 per cent to the Netherlands.

The repayments would have been staggered over 30 years, between 2016 and 2046.

A second referendum was held over the weekend on proposals for a repayment plan but these were again rejected by a 60 per cent majority.

Steingrimur Sigfusson, Iceland’s finance minister, told the BBC that “the failed bank would be able to pay out on about 90 per cent of claims from the UK and Dutch authorities.”
The UK and Dutch authorities have decided to take legal action against Iceland in a bid to recover the money. The issue will be taken before the European Free Trade Association Surveillance Authority.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. I cannot understand how a government can ask its citizens whether or not it should honour its financial obligations. Surely this is this is tantamount to asking if it is ok if the country steals from other countries.

  2. When we will ever learn? We repeatedly bail people out but never get anything back. We are in such a poor state ourselves so if they were to ask me next time I would say keep the money and help the British people first.

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