11 APR 2011
Britain and the Netherlands plan to sue EU candidate Iceland in a potentially drawn-out legal battle to recover $5 billion (3.46 billion euro) lost in a bank crash after Icelandic voters rejected a plan to repay the money.
The British and Dutch governments said they were disappointed with the result of a referendum on Saturday (9 April) in which almost 60% of voters opposed a repayment deal, the second time the Icelandic public has snubbed an agreement.
The debt was incurred when the two countries compensated their nationals who lost savings in online 'Icesave' accounts owned by Landsbanki, one of three Icelandic banks that collapsed in late 2008, triggering economic meltdown in the country of 320,000 people.
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