Talks between Iceland and the UK and the Netherlands over the Icesave banking dispute collapsed late on Thursday, making a referendum on a previously agreed deal more likely, a vote the government in Reykjavik is almost certain to lose.
The Icelandic finance ministry announced on Thursday evening that the latest round of talks between the parties had "adjourned without a final resolution."
Representatives of the three parties had been meeting in London for the last two weeks.
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