UK and Netherlands set to sue Iceland

11 Apr, 2011

The UK and Dutch governments are preparing to begin court action against Iceland in a bid to recover 4bn Euros (£3.5bn) worth of deposits that were lost as a result of the collapse of the Icelandic savings bank, Icesave, back in 2008.

The lawsuit comes as a result of the UK’s and Netherlands ‘disappointment’ at the result of a referendum in which the Icelandic people rejected a proposed repayment strategy.

According to the BBC, Dutch Finance Minister Jan Kees de Jager, said: “I am very disappointed that the Icesave agreement did not get through. This is not good for Iceland, nor for the Netherlands.

“The time for negotiations is over. Iceland remains obliged to repay. The issue is now for the courts to decide.”

The results of the referendum were fairly divided, with 59.1 per cent against, and 40.9 per cent in favour, of a repayment plan. According to the BBC, the Icelandic Prime Minister, Johanna Sigurdardottir, said that the country was ‘split in two’, saying: “The worst option has been chosen.”

However, according to the BBC, Iceland’s Finance Minister, Steingrimur Sigfusson, has said that the UK and Netherlands can expect to begin to get their money back by the end of the year.

The issue is now being referred to the European Free Trade Association Surveillance Authority.

About the author

Related Posts

Leave a reply