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06 Mar 2010 16:53 GMT | Business & Economy, Europe, Iceland
When the banks collapsed in 2008 in Iceland, the savings of more than 300,000 British and Dutch customers of the online Icesave bank were lost.Britain and the Netherlands compensated their savers and they now want Iceland to reimburse them.The issue is not so much whether Iceland will pay, but how much and on what terms.
The plan to pay back caused a public outcry because the proposed plan would see the taxpayers pay out an amount that is almost a third of their country's GDP.A referendum is underway to decide the fate of Iceland's debt plans.
Jonah Hull reports from Reykjavik, Iceland.
Source: Al Jazeera
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