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| Version 1 | Version 2 |
|---|---|
| Iceland president promises to pay | Iceland president promises to pay |
| (19 minutes later) | |
| Iceland's president has told the BBC's Newsnight programme that the country will pay its debts to the British and Dutch governments. | Iceland's president has told the BBC's Newsnight programme that the country will pay its debts to the British and Dutch governments. |
| President Olafur Grimsson said that Iceland would "honour its obligations", despite effectively vetoing new repayment laws. | |
| On Tuesday, the president called a public vote on a new bill committing Iceland to repaying $5bn (£3.1bn). | On Tuesday, the president called a public vote on a new bill committing Iceland to repaying $5bn (£3.1bn). |
| There has been significant opposition to the bill among Icelanders. | There has been significant opposition to the bill among Icelanders. |
| Opponents say the repayment plan could harm the Icelandic economy further, and force taxpayers to pay for bankers' mistakes. | Opponents say the repayment plan could harm the Icelandic economy further, and force taxpayers to pay for bankers' mistakes. |
| The debt stems from the Icelandic banking crisis in 2008, when the UK and the Netherlands were forced to compensate savers with accounts in Icesave - a subsidiary of the collapsed Landsbanki bank. | The debt stems from the Icelandic banking crisis in 2008, when the UK and the Netherlands were forced to compensate savers with accounts in Icesave - a subsidiary of the collapsed Landsbanki bank. |
| Laws already in place | Laws already in place |
| "The view which is being put forward that we will not honour our obligations is completely wrong," President Grimsson said. | "The view which is being put forward that we will not honour our obligations is completely wrong," President Grimsson said. |
| He argued that legislation signed by him in September already ensured that Iceland would repay the money. | He argued that legislation signed by him in September already ensured that Iceland would repay the money. |
| The Icesave bill has been the subject of protests in Iceland | The Icesave bill has been the subject of protests in Iceland |
| "The law which I signed in September is based on the agreement that we have made with Britain and the Netherlands, where Iceland acknowledges its obligations," he added. | "The law which I signed in September is based on the agreement that we have made with Britain and the Netherlands, where Iceland acknowledges its obligations," he added. |
| However, it is not clear that this earlier agreement will be acceptable to the UK government. | However, it is not clear that this earlier agreement will be acceptable to the UK government. |
| Unlike the later agreement it does not include a sovereign guarantee that the loan will be repaid in full. | Unlike the later agreement it does not include a sovereign guarantee that the loan will be repaid in full. |
| Public vote | Public vote |
| The referendum is currently scheduled for 20 February, according to draft legislation to be discussed by the Icelandic parliament on Friday. | The referendum is currently scheduled for 20 February, according to draft legislation to be discussed by the Icelandic parliament on Friday. |
| President Grimsson said that it was his duty to ensure that the public will on the matter was followed. | President Grimsson said that it was his duty to ensure that the public will on the matter was followed. |
| The latest opinion polls suggest the referendum is not necessarily simply a rubber stamp to blocking the bill. | The latest opinion polls suggest the referendum is not necessarily simply a rubber stamp to blocking the bill. |
| The latest opinion polls, quoted by the Reuters news agency, suggest a lessening of hostility. | The latest opinion polls, quoted by the Reuters news agency, suggest a lessening of hostility. |
| Some 51%-58% are against, down from about 70% formerly. | Some 51%-58% are against, down from about 70% formerly. |
| A successful resolution to the dispute is essential if Iceland is to continue accessing the $7bn of financing from the International Monetary Fund and other Nordic countries - funds seen as crucial to its economic recovery plan. | A successful resolution to the dispute is essential if Iceland is to continue accessing the $7bn of financing from the International Monetary Fund and other Nordic countries - funds seen as crucial to its economic recovery plan. |