Iceland votes to reject repay deal
Voters in Iceland have rejected a government-approved deal to repay Britain and the Netherlands £3bn for their citizens' deposits in the failed online bank Icesave.
Final results from five of six constituencies showed the "no" side taking just under 60% of the votes.
Prime Minister Johanna Sigurdardottir said the results were disappointing but she would try to prevent political and economic chaos resulting from it.
The result complicates Iceland's recovery from its 2008 economic collapse.
Icelanders overwhelmingly rejected a previous deal in a referendum last year, but the government hoped a new agreement on better terms would win approval.
The government hoped a "yes" vote on an improved offer passed by parliament would finally resolve a dispute that has caused friction among the three countries and complicated Iceland's recovery from its economic collapse in 2008.
The messy dispute stems from the collapse of Iceland's banks - and the tiny North Atlantic nation's overheated economy - in 2008.
British and Dutch savers had deposited more than five billion US dollars in Icesave's high-interest accounts.
After Icesave collapsed, British and Dutch authorities borrowed money to compensate their citizens, then turned to Iceland for repayment.
The dispute has grown acrimonious, with Britain and The Netherlands threatening to block Iceland's bid to join the European Union unless it is resolved.