Iceland votes on debt repay deal with UK, Dutch

[April 09, 2011]  REYKJAVIK, Iceland (AP) -- Icelanders are voting on whether to approve a deal to repay Britain and the Netherlands for their citizens' deposits in the failed online bank Icesave, with the result too close to call.

Pols suggest the "no" side is slightly ahead as polls open Saturday.

The dispute stems from the collapse of Iceland's banks -- and the tiny island nation's overheated economy -- in 2008.

British and Dutch savers deposited more than $5 billion in Icesave's high-interest accounts. After Icesave collapsed, British and Dutch authorities borrowed money to compensate their citizens, then turned to Iceland for repayment.

A repayment schedule was approved by Iceland's parliament in January but vetoed by the president amid public opposition.

Results are expected early Sunday.

[Associated Press]

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