Article: Iceland in row over refund to UK taxpayers; CRITICS ATTACK [pounds sterling]2.3bn DEAL ON LANDSBANKI CRASH.(News)

Byline: SIMON WATKINS

FEARS are growing that Iceland's parliament might renege on a deal to repay billions of pounds to the British taxpayer after the nearcollapse of the country's banking system last year.

The parliament, known as the Althing, will vote this week on whether to ratify a treaty under which it will refund [pounds sterling]2.3 billion paid by UK taxpayers to customers of Landsbanki, one of the Icelandic banks that collapsed last October.

Under a deal signed with the UK in June, Iceland accepted that it was liable for the payment under international agreements on insurance for bank customers.

The agreement treats the sum ...

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