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Iceland passes Bill to restore lost savings to stung Britons
28.08.09
Iceland's parliament this afternoon finally voted through the deal that will see the country repay Britain and Holland for the $5 billion (£3.1 billion) lost by savers in Icelandic deposit accounts.
The British Government had to step in with British taxpayers' money to reimburse those who lost out when their Icelandic banks went bust. In June, Iceland agreed to repay the money but the so-called Icesave Bill ran into huge controversy in the tiny country.
Icelanders were furious that Britain used laws designed to catch terrorists in order to seize the banks' assets and were deeply concerned that repaying the money owed would bankrupt the nation.
Iceland's government told citizens it had little choice but to make good the debts if it wanted to ensure continued financial help. Amendments have now been made to the Bill including a cap on the repayments which will be based on the state of the country's economy.
Today's passing of the Bill is seen as paving the way for Iceland to receive further international aid for its stricken economy.
Reader views (1)
Will the UK Government now help the thousands of Britons whose lives they wrecked on the 8th of October 2008?
It was the UK Government who brought in banking rules which made maintaining or opening a UK bank account without a UK address near impossible. Effectively forcing thousands of British overseas workers and Ex-Pats into the murky world of offshore banks.
It was the UK Government's FSA who persuaded the Isle of Man Kaupthing bank to but over half abillion pounds into the london Kaupthing Hf bank.
It was the UK Government who forced Kaupthing Hf into liquidation, after taking the onshore accounts and putting then in ING - ignoring the thousands overseas whose lives would be wrecked.
It is the UK Government who continue to ignore the disaster it caused to these thousands and deny any role in it.
Will the UK Government finally start to put things right and give back the money it confiscated from the British workers? Somehow I doubt it.
- Toby Warner, Perth, Australia
