Iceland votes 'no' to Icesave debt repayment

clock

Iceland voted no to repaying £3.4bn owed to the UK and Holland by an overwhelming majority of 93% in a weekend referendum over the costs of bailing out collapsed bank Icesave.

When the internet bank failed in October 2008, governments in London and The Hague stepped in and reimbursed savers. Iceland maintains it will meet its obligations but has baulked at paying what it claims are punitive interest rates - despite the fact The Treasury has offered to halve the interest rate on the loan. Until a deal is reached, Iceland will not receive the next trance of an IMF loan, nor will its bid for EU membership be likely to succeed. Alistair Darling admitted it will be ‘many, many years' before Britain was repaid the £2.3bn it is owed saying "we've tried to be re...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Watch Professional Adviser's Working Lunch with Baillie Gifford - Decumulation Decisions: Resilient Monthly Income for Retirees

Watch Professional Adviser's Working Lunch with Baillie Gifford - Decumulation Decisions: Resilient Monthly Income for Retirees

Catch up on the discussion

Professional Adviser
clock 10 October 2025 • 1 min read
MPS Watchlist - Issue 4 - Out Now!

MPS Watchlist - Issue 4 - Out Now!

Professional Adviser
clock 10 October 2025 • 1 min read
Partner Insight: Finding the right partner for a managed portfolio service

Partner Insight: Finding the right partner for a managed portfolio service

Francis Clark Financial Planning set up a white-label managed portfolio service for their clients, but as the effects of COVID-19 played out and markets stagnated, they realised they needed a change. Managing Director Chris Reah explains how they found the right solution.

Chris Reah, Francis Clark Financial Planning
clock 08 October 2025 • 5 min read