TIMELINE-Iceland to hold new referendum on Icesave deal

April 9 (Reuters) – Here is a timeline of events in Iceland
since its financial crisis erupted:

Oct. 6, 2008 – Threatened with national bankruptcy,
Icelanders give the government sweeping powers, including
wide-ranging authority over its banks.

Oct. 7 – The government dismisses the board of directors of
Landsbanki, the island’s second-largest bank by value, and puts
the bank in receivership.

Oct. 8 – The government takes control of Glitnir, the
third-largest bank, buying a 75 percent stake for 600 million
euros ($878 million).

Oct. 9 – The financial crisis deepens as Iceland also takes
control of Kaupthing, its biggest bank.

— A diplomatic row breaks out between Iceland and Britain
over how to deal with hundreds of millions of pounds of British
deposits trapped in collapsed Icelandic banks.

Oct. 15 – Iceland shores up its ravaged economy by slashing
borrowing costs; the central bank cuts its main interest rate to
12 percent from 15.5 percent.

Oct. 24 – Iceland asks the IMF for $2 billion in aid to help
fix the economy and restart currency trading.

Oct. 25 – Protesters demand the resignation of conservative
Prime Minister Geir Haarde.

Nov. 19 – The IMF approves a $2.1 billion loan for Iceland.
The deal is complemented by more than $3 billion in loans from
Nordic countries, Russia and Poland, and around $5 billion from
Britain, the Netherlands and Germany, making the whole package
worth about $10 billion.

Jan. 26, 2009 – Iceland’s ruling coalition falls apart when
Prime Minister Haarde says he is resigning. Two days later
Social Democrats are given a mandate to form a new government.

Feb. 1 – Iceland names an interim centre-left government
which promises to rebuild the economy. Johanna Sigurdardottir of
the Social Democratic Alliance is prime minister. The Social
Democrats, the junior partner in the previous government, forms
the caretaker administration with the Left-Greens.

April 25 – The caretaker government of the Social Democrats
and Left-Greens wins renewed power in parliamentary elections.

June 6 – Iceland agrees to reimburse Britain and the
Netherlands for compensating people in the two countries holding
Icesave accounts at Landsbanki.

July 17 – Iceland applies to join the EU a day after
parliament narrowly backs plans to begin talks on joining.

Aug. 28 – Parliament approves “Icesave” bill, having added
conditions such as linking payment to GDP development. However,
Britain and the Netherlands refuse to approve the revisions made
by the Icelandic parliament.

Dec. 30 – Parliament approves the amended bill to repay more
than $5 billion lost by savers in Britain and the Netherlands.

Jan. 5, 2010 – President Olafur Grimsson unexpectedly
rejects the bill, forcing a referendum on the issue and
threatening vital economic aid.

March 6 – Iceland overwhelmingly rejects a $5 billion deal
to repay debts to Britain and the Netherlands in a referendum.

April 16 – The IMF approves a long-delayed loan
disbursement for Iceland, releasing $160 million to the
crisis-hit country.
July 26 – The European Union agrees to start accession talks
with Iceland and urges it to resolve the debt dispute.

Dec. 9 – Iceland agrees better terms on repaying Britain and
the Netherlands over Icesave, negotiators say.

Feb. 16, 2011 – Lawmakers again back a deal to repay the $5
billion to Britain and the Netherlands.

Feb. 20 – President Olafur Grimsson triggers a new
referendum when he refuses to sign the bill.

April 9 – Icelanders vote in a referendum on the plan to
repay around $5 billion to Britain and the Netherlands.

TIMELINE-Iceland to hold new referendum on Icesave deal