Iceland rejects deal to repay British, Dutch depositors REYKJAVIK, Iceland — Voters in Iceland rejected a government-backed deal to repay Britain and the Netherlands for their citizens’ $5 billion worth of deposits in a failed online bank, referendum results showed Sunday — sending the dispute to an international court and plunging the economically fragile country into new uncertainty.
Final results showed the “no” side had just under 60 percent of the votes and the “yes” side about 40 percent.
The result reflects Icelanders’ anger at having to pay for the excesses of their bankers, and complicates the country’s recovery from economic meltdown.
It is the second time voters have defeated a bid to settle the bitter dispute stemming from the collapse of Iceland’s high-flying banking sector in 2008, and the government said it would be the last.
“We are at the end of the road of a negotiated solution,” said Finance Minister Steingrimur Sigfusson.
He said Iceland would now opt for “Plan B,” with the dispute going to the European Free Trade Association court, which could impose harsher terms on Iceland than those rejected in Saturday’s vote. — AP
Chinese export growth shows tolerance for rising rates
China’s faster-than-expected growth in exports and imports last month may allow Premier Wen Jiabao to strengthen his fight against inflation, which probably exceeded his target for the ninth straight month in March. Overseas shipments jumped 35.8 percent last month while imports climbed 27.3 percent to a record, pulling the trade balance unexpectedly into surplus after a $7.3 billion shortfall in February, the customs bureau said Saturday. The gains add to evidence that the world’s second-biggest economy isn’t being hobbled by higher borrowing costs and curbs on lending. China’s benchmark stock index has climbed 9 percent since the first of two interest-rate increases this year, beating the 0.6 percent gain in the S&P 500 Index and a 1.4 percent drop in the MSCI Asia Pacific Index. — Bloomberg
