People over here (the press) are grumbling about it and that means that fuckwit Gordon Brown will probably do something stupid (not that using anti-terror law against Iceland in the first place wasn't fucking stupid) to save some face. We have a general election in a few months and it's already ugly.
Frankly, the repayment isn't the responsibility of the Icelandic government, it was private banks that failed and the government can sort the mess of their nation how it sees fit. The repayment scheme would be just as bad for Iceland as the reparations that Germany was expected to pay back to the allied powers after world war one. And those lead directly to the rise of Hitler. It won't be the first time that another country has gone "err, no" to the UK in recent years. France have done it several times over various issues. Mostly related to farming.
We're pissing away more than the money owed each month in blind government policy as our decaying Prime Minister and his blind socialist agenda attempts to keep itself in power by strangling the economy beyond all reasonable means until after the election in part of its desperate hope to cling to power. It's fucking disgusting.
BTW what happened to your lesbian president?