Tuesday, March 09, 2010

Icelanders votes no, turns a cold shoulder to British, Dutch banker bailout deal

Yahoo News:

REYKJAVIK, Iceland – Icelanders blew whistles and set off fireworks in the capital as referendum results Sunday showed they had resoundingly rejected a $5.3 billion plan to repay Britain and the Netherlands for debts spawned by the collapse of an Icelandic bank.

Voters in the tiny Atlantic island nation defied both their parliament and international pressure to display their anger at how their nation was being treated.

"This is a strong 'No' from the Icelandic nation," said Magnus Arni Skulason, co-founder of a group opposed to the deal. "The Icelandic public understands that we are sovereign and we have to be treated like a sovereign nation — not being bullied like the British and the Dutch have been doing."

[...] Britain and the Netherlands want to be reimbursed for money they paid their citizens with deposits in Icesave, an Internet bank that collapsed in 2008, along with most of Iceland's banking sector. Most ordinary Icelanders feel the repayment schedule was too onerous.

[...] The overwhelming margin reflected Icelanders' simmering anger at bankers and politicians as the country struggles to recover from a financial meltdown. President Olafur R. Grimsson — who sparked the referendum by refusing to sign the repayment deal agreed by Iceland's parliament — said Icelanders resented having to pay for the actions of a few "greedy bankers."

He said, however, the British and Dutch would get their money back eventually.

"The referendum was not about refusing to pay back the money," Grimsson told the BBC.

"Iceland is willing to reimburse those two governments, but it has to be on fair terms."
Iceland, a volcanic island with a population of just 320,000, went from economic wunderkind to fiscal basket case almost overnight when the credit crunch took hold.

No comments: