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Iceland rejects repayment deal

Nearly 60% of people were against the plan

Icelanders have rejected the latest plan to repay the UK and Netherlands some 4bn euros lost when the country's banking system collapsed in 2008.

Partial referendum results show 58% voting no, and 42% supporting the plan.

Johanna Sigurdardottir, Iceland's Prime Minister, said the rejection meant "the worst option was chosen".

UK Treasury minister Danny Alexander said the decision was "disappointing" and the matter would go to an international court.

Dutch Finance minister Jan Kees de Jager said he would be consulting Britain about taking further steps against Iceland, but added that the matter would likely end up in court.

"I am very disappointed that the Icesave agreement did not get through. This is not good for Iceland, nor for the Netherlands.

"The time for negotiations is over. Iceland remains obliged to repay. The issue is now for the courts to decide," Mr de Jager said in a statement.

It is the second time a referendum has rejected a repayment deal.

Iceland's Landsbanki bank ran savings accounts in the UK and Netherlands under the name Icesave and investors there lost 4bn euros (£3.5bn; $5.8bn).

When it collapsed in 2008, the British and Dutch governments had to reimburse 400,000 citizens - and Iceland had to decide how to repay that money.

Continue here.... http://www.bbc.co.uk/news/world-europe-13022524

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Reply 1

Sushidelight

And this reminds me of....

Reply 2

username547863

I think its ridiculous that Iceland wont own up and pay its debt. Ive heared many icelandic people say "We didnt cause this crisis" "We shouldnt pay" but they voted in the government that nationalised the banks, making it their problem. The government represents the people, its actions will effect the icelandic people.

Iceland will have to pay sooner or later, dragging it out will make the situation worse and highly damage its chances of fast-traking into the EU and its credit rating.

Maybe we can take our 1960s aircraft carrier and our one submarine (when they stop killing eachother) and send them up to Iceland??

Reply 3

username547863

Original post by GwrxVurfer

So you want to commit mass-murder on a country because you've got it into your head that they owe you money?

Let's hope that you never get into Government, we'll have a nuclear war within a week.

It wasnt a serious suggestion...

Reply 4

Aj12

They owe us money its a clear cut case tbh. We shall see what the courts say. This will not end well for Iceland.

For all what this forum thinks Britain is a very influent world player and this will not end well for iceland

Reply 5

username547863

Original post by GwrxVurfer

Thank goodness for that.

Still wouldn't trust you in Government. You've got it into your head that Iceland owe you money. They've concluded that they don't (multiple times). What good is Icelandic ISK to you anyway, no shops over here accept it.

Many thousands of people from the UK and Netherlands deposited 4 Billion Euros in total in Icelandic banks. Its not the depositors fault they went that the icelandic banking system was under-regulated and needed a bailout. The Icelandic gov nationalised them and paid out all icelandic investors but didnt with overseas ones... Icelandic banks were allowed to operate in the UK and over the world they have a duty to pay up to all investors, you can easily convert foreign currencies you know?

(edited 13 years ago)

Reply 6

Aj12

Original post by GwrxVurfer

Aha, so democracy is only acceptable when the vote goes in your favour. Typical.

Let me take a guess which "court" you want this to go to - The "international court"?

Perhaps I missed a part of your argument - Could you clarify exactly why you believe that this court which you call "international" is somehow entitled to override the democracy of sovereign nations?

They owe us money end off.

How about we do a referendum that says the world should give us all their money. The world can hardly say no can they if its democratic :rolleyes:

Reply 7

cje10

American banks mess up - Americans pay the price.
British banks mess up - Brits pay the price.
Icelandic banks mess up - Icelanders SHOULD pay the price.

The world isn't fair. We have suffered in this country due to the mistakes of bankers. For a small country like Iceland, the lengthy process of revoting and stretching this out further will only lead to the people paying the price regardless.

Reply 8

Pop_tart

Original post by GwrxVurfer

You've got it into your head that Iceland owe you money. They've concluded that they don't (multiple times). What good is Icelandic ISK to you anyway, no shops over here accept it.

Simply because Iceland has concluded they don't owe money doesn't mean they don't owe any money to anyone :tongue:

Maybe I had an account to save up money there as well? How do you know? Don't go around telling people what they got into their heads. You got it into YOUR head that you know everything about this matter :rant:

no offence :biggrin:

Reply 9

Iorek

Not surprising it has come to this.

But who knows they just may get a better deal should it go to court.

Reply 10

Aack

It's only money our Government would waste on rubbish. Who really cares.

No one is going to die. Get over it.

Reply 11

Aphotic Cosmos

Original post by GwrxVurfer

Seeing as the court that this will be arbitrated in is a European trade disputes court who's legality is recognised by both Iceland and the UK, it's perfectly entitled to override the sovereignty of a nation when they are charged to be in breach of the agreements and treaties which the court enforces.

This is an Icelandic mess, and much as I like Icelanders they've got to clean this up. We took hits over Northern Rock, over Lloyds, over HBOS, it's only fair they take the hit over their busted companies.

To be honest, although it will take years for the courts to approve to this we can still just block Iceland's EU accession indefinitely until they pay. International blackmail FTW.

(edited 13 years ago)

Reply 12

username547863

Original post by Aack

It's only money our Government would waste on rubbish. Who really cares.

No one is going to die. Get over it.

If you lost 4 Billion euros wouldnt you want it back?

Reply 13

Unknown?

Wouldn't we just give money from iceland to portugal? :ahee:

Reply 14

manchild007

Original post by Aj12

For all what this forum thinks Britain is a very influent world player and this will not end well for iceland

No its not; Iceland whittled the UK down to an interest rate of 3% ex LIBOR payments on the debt thus far, whereas the original rate of 5% +LIBOR should have been the minimum charged (given LIBOR would have included the overnight swap rates we/the UK undertook when making its payment to moneyholders).

Agreed on the fact that this won't end well for Iceland, as its pretty clear cut on who owes who what, but to say the UK is a influential player is a tad overstatement to say the least.

Reply 15

Will Lucky

Courts will almost certainly take our side so we will get the money back, stupid decision by them really as this makes it more drawn out and likely more painful in the long run.

Reply 16

Aack

Original post by NGC773

If you lost 4 Billion euros wouldnt you want it back?

I haven't lost anything and neither have you.

Reply 17

adamrules247

Let's invade :ahee:

(edited 13 years ago)

Reply 18

manchild007

Original post by cje10

American banks mess up - Americans pay the price.
British banks mess up - Brits pay the price.
Icelandic banks mess up - Icelanders SHOULD pay the price.

Except in the case of the American banks, a large part of the price was paid by Europe/UK and not by America itself, as most of the CDO debt which had been bundled off balance sheet, had been transferred over to European financial institutions.

Whereas when European banks messed up in their own lending markets (like for example recently in the PIGS - Portugal, Ireland, Greece, Spain etc), it didn't effect the US in the slightest.