Iceland Citizens and Icelandic Private Banks Repudiate Debt Financial Bailout
* Updated on October 14, 2022 John has been interested in economics and politics since high school. He wants to vote more responsibly and watches candidates' positions. NOTE: Iceland did not bail out its failed banks in 2010. It let them collapse in 2008 and created new domestic banks instead. What should Iceland do? Should Iceland Refuse to Pay? In March of 2010, something rather remarkable happened. Icelanders voted not to accept a proposal called "Icesave" which would have provided for the repayment of funds that England and the Netherlands had paid to its citizens who had lost savings in Icelandic private banks. When Icelandic banks went bankrupt in 2008 and 2009...