Iceland won't pay Britain and the Netherlands (1)
Rahvusvahelised uudised 05 Jan 2010  EWR
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The Swedish Wire
REYKJAVIK (AFP) - Iceland's president said Tuesday he would 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.

Britian insisted, however, that the compensation deal must go through, with the Treasury urging Iceland to meet its "obligations." The Dutch government said it was "extremely disappointed" at the refusal of Iceland's president to sign a bill.

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