lafur Ragnar Grímsson, President of Iceland, announced today that he
had decided to refuse the law that guarantees the payment of the Icesave
account in England and Holland.

"Now the Icelandic people will have
the power and responsibility (that) is now in their hands," said Olafur Ragnar in a statement. "It is my sincere hope that this outcome will
lead to permanent reconciliation and progress for Icelanders as it
lays the foundation for good cohabiting with all nations."

Now a referendum must take place and the people of Iceland will decide about the Icesave account.

A spokesman for the Dutch Finance Ministry says that is very disappointed with the decision of the Icelandic President.
It
is unacceptable that no solution is available in Icesave matter.
Netherlands hope now is for the response of the Government of Iceland.

Holland looks at Iceland as an unreliable country.

"All
financial assistance to Iceland is out if Icelandic people say no
to the Icesave payment," said Paul Myners, bank minister of
the UK, and further, that if the Icelandic People say No, then Iceland
would be out of every International market on the planet.