The Icelandic parliament held an emergency session today to debate details of a referendum on repaying $5.7 billion to Britain and the Netherlands _ a poll that is seen as a defining moment in the bankrupted country"s economic recovery, according to AP. The government was forced into organizing the nationwide vote after Iceland"s President Olafur R. Grimsson refused to sign legislation on the repayment into law. That set off a diplomatic clash with Britain and jeopardized crucial bailout funds promised by the International Monetary Fund and Nordic countries. Britain has since backed away from claims that Iceland would become an international pariah and Norway stood by its commitment to an IMF-led $4.6 billion bailout fund. But the Spanish European Union presidency warned Friday that Iceland"s bid to join the body could be delayed by the dispute. As well as appeasing the international community, the embattled Icelandic government is facing the uphill task of winning public support for its efforts to repay the bill as an essential part of Iceland"s recovery from the collapse of its banking sector in October 2008. «I have full trust in the Icelandic voters and know that they will make the right decision,» Icelandic Prime Minister Johanna Sigurdardottir said during debate over the referendum on Friday. Sigurdardottir said he was confident that parliament would pass legislation later Friday regarding issues such as how the referendum will be worded and when the vote will be held.
