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Iceland to vote on Icesave plan Icelanders vote on payback plan
(about 3 hours later)
Iceland is to hold its first referendum in history on plans to repay debts owed to the UK and the Netherlands in the wake of Icesave bank's collapse. Icelanders go to the polls shortly to vote on paying the UK and Netherlands after the collapse of the Icesave bank, with a resounding "no" vote expected.
The British and Dutch governments want reimbursement for the 3.8bn euros (£3.4bn; $5.2bn) they paid out in compensation to customers in 2008.The British and Dutch governments want reimbursement for the 3.8bn euros (£3.4bn; $5.2bn) they paid out in compensation to customers in 2008.
Talks between the three countries broke down on Friday without agreement.Talks between the three countries broke down on Friday without agreement.
Iceland's PM is urging voters to shun the "meaningless" referendum, called after the president blocked repayment. But the prime minister urged people to shun the referendum, saying better payment terms had been tabled.
Apology Johanna Sigurdardottir said she would not vote herself as her government sought to continue the talks with Britain and the Netherlands.
The Icelandic government had hoped to avoid the vote by agreeing a new repayment plan before the weekend. It's not fair and justifiable that the Icelandic nation should pay for other people's mistakes Benedikt Mewes voter
Iceland's Prime Minister Johanna Sigurdardottir is calling for further talks to take place. Opinion polls suggest the majority of voters will reject the referendum.
Polls indicate that the majority of voters will reject the referendum.
A "no" vote could put billions of dollars of loans from the International Monetary Fund and other countries at risk.A "no" vote could put billions of dollars of loans from the International Monetary Fund and other countries at risk.
Finance Minister Steingrimur Sigfusson attempted to play down the significance of the referendum, called after President Olaf Ragnar Grimsson blocked the initial deal.
"It's of utmost importance that we don't over-interpret whatever message comes out of this," he said.
"We want to be perfectly clear that a 'no' vote does not mean we are refusing to pay. We will honour our obligations. To maintain anything else is highly dangerous for the economy of this country."
Apology
The government had hoped to avoid the vote by agreeing a new repayment plan before the weekend.
ANALYSIS Jonny Dymond, BBC News, Reykjavik
Rarely can there have been a stranger referendum than this.
Everyone here acknowledges that the deal that Icelanders are being asked to vote on has been superseded in negotiations between Britain, Iceland and the Netherlands over the past two months, so the current offer to Iceland is better than the one that is on today's ballot papers.
The government would have liked to have scrapped the referendum. The prime minister has already said that she will not vote.
Those who do make it to the polling stations will probably make a protest vote: there is real bitterness here about the way that Iceland has been treated by the Netherlands and especially by Britain. Chance for payback
Foreign Minister Ossur Skarphethinsson told Reuters news agency he expected a new Icesave deal "in the next weeks, perhaps sooner".
Britain and the Netherlands want the money as repayment for bailing out customers in the Icesave online bank, which folded in 2008 due to the global financial meltdown.Britain and the Netherlands want the money as repayment for bailing out customers in the Icesave online bank, which folded in 2008 due to the global financial meltdown.
Many Icelanders believe the plan should be rejected because they feel they are being penalised for the mistakes of the banking industry.Many Icelanders believe the plan should be rejected because they feel they are being penalised for the mistakes of the banking industry.
"I am going to say no on Saturday because it's not fair and justifiable that the Icelandic nation should pay for other people's mistakes," Benedikt Mewes, a cashier at the National Post Office in Reykjavik, told the Associated Press news agency.
There is also anger against the UK for using anti-terrorist legislation to freeze Icesave assets in the country.There is also anger against the UK for using anti-terrorist legislation to freeze Icesave assets in the country.
Johanna Sigurdardottir told the BBC that Britain should officially apologise for its actions.Johanna Sigurdardottir told the BBC that Britain should officially apologise for its actions.
The Reykjavik government approved the repayment plan last December but it was blocked by Iceland's President Olaf Ragnar Grimsson in January, which has led to the referendum being called. The Reykjavik government approved the repayment plan last December but it was blocked by President Grimsson in January, which led to the referendum being called.
Are you in Iceland? Will you be voting in the referendum? Send us your comments using the form below.Are you in Iceland? Will you be voting in the referendum? Send us your comments using the form below.
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