Iceland's president rejects bank payout bill

Iceland's president said he will not sign a controversial bill to compensate the British and Dutch governments over the failure of Icesave bank

Iceland's president rejects bank payout bill

Iceland's president said on Tuesday he will not sign a controversial bill to compensate the British and Dutch governments over the failure of Icesave bank, instead referring the issue to a referendum.

"I have decided, according to Article 26 of the Constitution, to refer this new Act to the people," President Olafur Ragnar Grimsson said in a speech televised to the nation.

Britain insisted, however, that the compensation deal must go through, with the Treasury urging Iceland to meet its "obligations."

Under the Icelandic constitution, if a president refuses to sign a bill voted by parliament, the issue is put to a popular referendum.

The Icesave bill, narrowly approved by the Icelandic parliament on December 31, calls for the payout of 3.8 billion euros (5.4 billion dollars) to the British and Dutch governments for having compensated more than 320,000 British and Dutch savers who lost money in the collapse of the Icelandic bank.


Agencies

Last Mod: 05 Ocak 2010, 23:46
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