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Voters in Iceland reject bank collapse compensation deal

10 April 2011 Last updated at 10:24 BST

Icelanders have rejected the latest plan to repay the UK and Netherlands some 4bn euros lost when the country's banking system collapsed in 2008.

It is the second time a referendum has rejected a repayment deal and the case will now go to an international court. Joe Lynam reports.

This video has been updated as an earlier version included an incorrect figure.