And a referendum voted on by the populace may have Iceland refusing to repay lost( bailout) foreign investments with their taxpayer money,( britain and the IMF are sure to react "poorly", <!--article body --> <!--breaking news --> <!-- article header, including ads --> Iceland faces crisis after Icesave rejection <form method="post" action="http://buzz.yahoo.com/vote/" class="buzz" id="media-buzz-top"> <input name="publisherurn" value="y_finance" type="hidden"> <input name="guid" value="yahoo_finance/2004766264" type="hidden"> <input name=".done" value="/article/y_finance/yahoo_finance/2004766264" type="hidden"> <input name="assettype" value="article" type="hidden"> <input name="votetype" value="1" type="hidden"> <input name="from" value="orion" type="hidden"> <input name="key" value="d0ba7" type="hidden"> <input name=".crumb" value="smq7imhIbQc" type="hidden"> <input name="logged" value="0" type="hidden"> <button type="submit">Buzz up! 15</button> </form> Print <!-- ./end of article hd --> <!--- Insert the sidebar information --> Reuters - Iceland's President Olafur Ragnar Grimsson speaks to media in Reykjavik January 26, 2009. REUTERS/Ints Kalnins ... On Tuesday January 5, 2010, 7:52 am EST By Omar Valdimarsson <!-- Article Related Media --> REYKJAVIK (Reuters) - Iceland's president refused on Tuesday to sign into law a bill to repay more than $5 billion lost by savers in Britain and the Netherlands, forcing the issue to a referendum and stirring fresh turmoil in the crisis-hit country. President Olafur Grimsson's rejection of the unpopular bill put aid from international lenders and his country's aspirations to join the European Union in serious jeopardy, analysts said. A Finnish official said the decision was likely to delay a loan of 1.8 billion euros from Nordic countries. Continued financial assistance is vital in the wake of the north Atlantic island's economic meltdown. Only once in the republic's 65-year history has a president, whose post is largely symbolic, refused to sign a bill into law. The constitution requires the issue to be put to a public vote if the president refuses to sign. "It has steadily become more apparent that the people must be convinced that they themselves determine the future course," Grimsson told a news conference. The Dutch Finance Ministry said it was "very disappointed" and would demand an immediate explanation. The British Treasury said it would consult with Iceland and take up the matter in the European Union, where Britain and the Netherlands have a veto over Reykjavik's membership bid. The cost of insuring Icelandic debt against default was little changed, with five-year credit default swaps at 428 bps after the news, compared with 427 on Monday. http://finance.yahoo.com/news/Icela...FjZXM-?x=0&sec=topStories&pos=6&asset=&ccode=...
Seems to be the way to "do business" today... Borrow more than you can afford, then NOT pay any of it back! I should have gotten a few dozen credit cards and tried that! Wonder how I'd fare thru that one?
This makes it sound like savers in Britain and the Netherlands deposited funds in Icelandic banks. Why should the taxpayers foot the bill for the banks' actions? Or, did the savers buy Icelandic Bonds? If so, then the government should pony up and pay 'em.
The GOV of Britain and Netherlands reimbursed their citizens for the citizens loses in an icelandic bank ICESAVE i think it was called. And now they want Iceland to pay the gov of britain and netherlands back.
Ferfal has a book and a number of post in "Surviving Argentina" with the refusal of the Argentine government in 2001 to pay back loans by the IMF. Economic colapse, crime, and a long slow recovery that is still going on was the result. Very interesting read.
