ICELANDERS REJECT DEBT REPAYMENT PLAN
Voters in Iceland have rejected--for the second time-- a plan to repay debts to Britain and the Netherlands from a bank crash, partial referendum results showed. Jóhanna Sigurðardóttir, Iceland's prime minister, said economic and political chaos could follow, after near-complete results were quoted on Sunday by RUV public radio. "The worst option was chosen. The vote has split the nation in two," the premier told state television, saying it was fairly clear the "no" side had won.
Icelanders say citizens should not bail out irresponsible bankers who were blamed for the collapse of the Icesave bank and the loss of hundreds of millions of dollars. With around 85,000 votes in the referendum counted, official figures showed 58 per cent had voted against the plan compared with 42 per cent in favour, the television said. Iceland has 230,000 voters but the turnout was not immediately available. The dispute over repayment has soured relations between the small North Atlantic island nation and the two other countries. It may now be solved in a European court rather than in bilateral talks, a solution that may take several years and that some economists say that it would be much costlier.
BBC: Iceland rejects Icesave repayment deal
Bloomberg: Icelanders Reject British, Dutch Depositor Bill a 2nd Time
BullFax: Icesave 'no' vote wins in Iceland referendum