Britain and Netherlands want payback for Iceland joining EU

The Cambodia News.Net
Sunday 20th June, 2010

While the European Union has told Iceland it can apply to join the EU, Britain and the Netherlands have demanded that first Iceland should resolve issues of money owed for bank failures.

Britain and the Netherlands have asked officials of the EU to ensure Iceland first pays for losses incurred when several of its banks failed during the financial meltdown in the fall of 2008.

Many people in Holland and the UK lost money during the collapse.

In May, the European Free Trade Association Surveillance authority warned Iceland it should at least provide the minimum compensation to the depositors who dropped money in the crisis.

Iceland owes Britain and the Netherlands billions of dollars over bank payments.