Icelanders have rejected a proposal to repay £2bn to the UK and Netherlands after the country's banking system collapsed in 2008.
This is Iceland's second referendum on how to repay the money The Icelandic Prime Minister Johanna Sigurdardottir has predicted "political and economic chaos as a result of this outcome", but did not say if the government would resign. Thousands of savers had to be compensated after the online bank Icesave collapsed. It was one of three of the country's banks to go under. The Icelandic government took over control of the failed banks and paid compensation to Icelanders who lost money. But those in the UK and the Netherlands who saved with Icesave were offered nothing and had to be reimbursed by their own governments. Iceland has had to decide how to repay the money but the terms of the repayment deal has delayed the process. This is the second time the Icelandic government has held a referendum on repaying the money. The future of Prime Minister Johanna Sigurdardottir is unclear In March 2010 over 93% of voters rejected a tougher repayment regime and the finance minis...