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PPI Claim News - 6/1/2010

 
Bank claim: Iceland's president vetoes repayment plan

Iceland's president Olafur Ragnar Grimsson has rejected a plan which would see the country pay for the refunding of British consumers who lost out as a result of online bank Icesave folding in 2008, the BBC reports.

Today (January 5th) the island nation's premier refused to sign a bill passed by the Icelandic parliament last week which would provide compensation for British savers and the British government, which refunded the bank's customers in 2008.

The legislation would have required the president's approval to be passed into law, and Mr Grimsson announced that a referendum would be held on the issue, after members of the public had protested against the payment.

He has provoked a spat with the country's prime minister Johanna Sigurdardottir, who told the news provider: "Uncertainty in the formal dealings with other countries can have unforeseen, wide-ranging and potentially damaging consequences for our society."

The collapse of Landsbanki affected 320,000 UK customers who had taken out high-interest accounts and the British government angered Icelandic politicians in 2008 by freezing the bank's assets.

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