By Sara Malm PUBLISHED: 12:37 EST, 28 January 2013 | UPDATED: 12:49 EST, 28 January 2013 Iceland was not to blame for its bank crisis and did no wrong when refusing to repay billions of pounds of UK savers' money, a European court said today. Governments in Britain and the Netherlands were forced to repay £3.18 billion to members of the public who lost their deposits when Icesave, an online subsidiary of Iceland's Landsbanki, collapsed in the 2008 crisis. The Luxembourg-based European Free Trade Association Court ruled that deposit-guarantee laws did not cover ‘a systemic bank failure of the magnitude experienced’ in the tiny North Atlantic nation.
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Iceland not to blame for 2008 collapse of its banks, court rules
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Country did no wrong when it refused to repay depositors' money
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Some 340,000 British and Dutch savers lost deposits which was paid out to them by their respective governments
Icelandic voters have twice rejected deals brokered by their government to reimburse the two countries, partly because of anti-terrorism legislation used by the @placeholder government.