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

Darius McDermott: Old demographics, new innovations — so why isn't healthcare booming?

Darius McDermott: Old demographics, new innovations — so why isn't healthcare booming?

'The sector should be flying — but it isn't'

Darius McDermott
clock 08 May 2025 • 5 min read
Why China's journey to net zero demands investors' attention

Why China's journey to net zero demands investors' attention

China's journey towards net zero could yet prove more rapid than expected

Gabriel Sacks
clock 07 May 2025 • 4 min read
Morningstar CEO: Advisers and industry need 'shared language' around risk

Morningstar CEO: Advisers and industry need 'shared language' around risk

Kapoor points to UK regulation becoming more ‘goals focused’

Sahar Nazir
clock 07 May 2025 • 2 min read