Iceland to hold referendum on international debt repayments
By Jordan Shilton 21 January 2010
Iceland’s Social Democrat-Left Green coalition has confirmed that a referendum on whether to honour the controversial agreement to repay Britain and the Netherlands a total of €3.9 billion by 2024 will be held on March 6.
Late last year, the Icelandic parliament narrowly passed the so-called IceSave bill, which would provide a state guarantee to meet the onerous terms of the agreement, which is designed to repay London and The Hague for compensating hundreds of thousands of British and Dutch citizens who lost savings during the collapse of Iceland’s national bank, Landsbanki.
On January 5 President Ólafur Ragnar Grímsson refused to sign the bill into law, triggering a constitutional mandate that the bill be subjected to a national referendum. In the event the electorate votes down the bill, which looks likely according to the latest polls, the legislation will not come into effect. more