The President of Iceland has today referred bill of legislation authorizing the Minister of Finance to ratify agreements to "guarantee (a) repayment by the Depositors' and Investors' Guarantee Fund to the UK and the Netherlands of cost incurred in payment of minimum guarantees to depositors in branches of Landsbanki Íslands hf. in the UK and the Netherlands, and (b) payment of outstanding amounts (the shortfall) and interest on these obligations", or so-called Icesave agreements, to a referendum.
The Parliament of Iceland, Althingi, had passed the bill of legislation on the 16 February 2011 with strong majority; 44 members of Parliament out of 63 were in favour.
According to the Icelandic Constitution a referendum on the bill will now take place as soon as possible as subsequent of the President´s decision.
The Icelandic, British and the Dutch authorities are exspected to be communicating on the matter in upcoming days.