Iceland votes on repaying debt

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.

Polls suggest the ’no’ side is slightly ahead as polls opened today.

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 $5bn 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.