Iceland Warns Of “Political And Economic Chaos” As Voters Reject Icesave Debt Deal

Jóhanna Sigurðardóttir
Jóhanna Sigurðardóttir

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Icelandic voters rejected a deal today to repay Britain and the Netherlands $5 billion for lost deposits in the failed Icesave bank.Around this time last year, they also rejected a debt repayment deal.

Prime Minister Jóhanna Sigurðardóttir said the vote was a disappointment and warned: “We must do all we can to prevent political and economic chaos as a result of this outcome.”

Failure to repay the debt could become an obstacle to Iceland joining the EU. It will also delay installments of a $4.6 billion loan from the IMF, according to the Journal.