The government of Prime Minister Johanna Sigurdardottir government admitted defeat after it became clear last night that more than 90 per cent of the volcanic island’s voters had supported calls by their president for a “fair deal” in a national referendum on the issue. Iceland’s parliament had originally agreed to pay back Britain over 14 years but the island’s president Olafur Grimsson refused to approve it and called the referendum.   Related Articles Iceland's vote gives UK little comfort Iceland demands Brown takes lead on debt row Raising the temperature in Reykjavic Icesave deal 'still possible', Iceland's PM says Icesave repayment talks collapse Iceland 'lied' over the state of its banks before collapse, says Dutch central bank Mr Grimsson said yesterday that Gordon Brown now had to resolve the dispute between the two countries, which has revived bitter memories of the 1970s cod wars. Icelanders have gone to the polls to vote on paying the UK and Netherlands after the collapse of the Icesave bank, with a resounding “No” vote expected.[Read more...]