London Metro 
April 11, 2011
Iceland is to be sued by Britain and the Netherlands to recover £3.5billion lost when its banking system collapsed.
But the legal action will take at least 18 months to resolve, the British government has been warned.
The move follows a referendum in Iceland that rejected repaying money lost by the IceSave bank when it went bust in October 2008.
The British and Dutch governments had to reimburse 400,000 citizens when they lost their deposits.
‘It’s obviously disappointing, it seems the people of Iceland have rejected what was a negotiated settlement,’ said chief secretary to the Treasury, Danny Alexander.