Financial Regulatory Forum

PREVIEW-Angry Icelanders set to reject Icesave deal

REYKJAVIK, March 5 (Reuters) – Icelanders are set to reject the terms for repaying Anglo-Dutch debts in a referendum on Saturday, forcing new negotiations with creditors and delaying financial aid the country needs to fix its shattered economy.

Despite the negative consequences of rejecting the deal, Icelanders are furious about what they see as overly harsh terms from Britain and the Netherlands and they are now certain they can get a much better deal.

“Some will vote ‘No’ to tell the world that Iceland won’t accept this treatment, but studies have shown more than half believe that Iceland is ethically bound to pay back the debts,” said Gudbjorg Andrea Jonsdottir, director at pollster Capacent.

Britain and the Netherlands have already offered easier repayment terms, so there is no reason for voters on the island of 320,000 to agree to the existing deal, which was drawn up late last year, on repaying about $5 billion.

But in addition to thumbing their noses at the British and the Dutch, the referendum gives Icelanders a chance to vent their anger at greedy bankers and politicians in Reykjavik who are widely blamed for bringing down the island’s economy.

Iceland says has new repayment deal with UK, Holland over deposit losses

Iceland's Prime Minister Johanna Sigurdardottir smiles before a vote on the controversial "Icesave bill" in Reykjavik August 28, 2009. (File Photo) REUTERS/Ingolfur Juliusson By Omar Valdimarsson
REYKJAVIK, Oct 18 (Reuters) – Iceland said on Sunday it had agreed to a new deal to repay Britain and the Netherlands billions of dollars of deposits lost when the island’s banks collapsed in 2008, paving the way for new aid from international lenders.

Iceland strikes deal to clean up banking mess

STOCKHOLM, July 20 (Reuters) – Iceland took a step towards clearing the debris of its financial meltdown on Monday, unveiling a deal with creditors of its failed banks and plans to capitalise the new ones. (more…)