Iceland votes against paying debt to UK
In the country’s first referendum as an independent nation, 93 per cent of the Icelandic population has voted against repaying £3.3 billion worth of loans to the UK and Netherlands. They are calling for the government to withhold payment while the country restores its own economic health.
When the online bank, Icesave, collapsed in 2008, both the UK and the Netherlands were forced to compensate savers.
Steingrimur Sigfusson, the country’s finance minister, said the no vote did not mean Iceland was refusing to meet its obligations. “To maintain anything else is highly dangerous for the economy of this country,” he stated.
However, Mr Sigfusson also indicated that further discussions would be necessary in order for an agreement to be reached.
Iceland’s prime minister Johanna Sigurdardottir, who negotiated the deal with England and the Netherlands, spoke out against the proposed repayment deal ahead of the referendum.
Whether the government will withhold payment, or not, is still undetermined.