Reuters has confirmed that the Icelandic government is going to initiate re-negotiations with British and Dutch authorities over Icesave, in the hopes of avoiding a referendum altogether.
The story, appearing on business.dk, informs readers that the Icelandic president’s veto of the Icesave law refered it to national referedum, scheduled to take place 6 March. By beginning negotiations with British and Dutch authorities anew, the Icelandic government could avoid a referendum altogether.
Reuters cites a spokesperson for the British treasury as saying that British authorities are in constant talks with Iceland in order to resolve the issue.
Publicly, both Prime Minister Jóhanna Sigurðardóttir and Minister of Finance Steingrímur J. Sigfússon have up to this point told reporters that a referendum will be held.
The referendum, expected to be held 6 March, will cost an estimated 200 million ISK. If the law is defeated, a new law will have to be drafted and negotiations with British and Dutch authorities will re-commence, as the Icelandic government has stated it intends to pay Icesave depositors.