Icelandic voters appeared Sunday to have rejected a plan to repay Britain and the Netherlands for money their citizens lost in a failed Icelandic bank.
With about 70 percent of the vote of Saturday’s referendum counted, the vote was 58 percent against the plan – a result that is bound to embarrass the Reykjavik government.
Prime Minister Johanna Sigurdardottir called the results disappointing. She has said a “no” vote would result in political and economic chaos.
Authorities say British and Dutch customers deposited $5 billion in online bank, Icesave. When the bank failed, Britain and the Netherlands compensated their citizens for lost savings. Both countries are now seeking reimbursement from Iceland.
A payment schedule approved by Iceland’s parliament in January was eventually vetoed by the president.