A 'yes' vote over repaying the Netherlands and Britain around $5bn the two countries handed out to their savers who lost money when Icelandic bank Landsbanki collapsed in late 2008 is seen as key to sustaining Iceland's economic recovery.
The government said in a statement that 'the interior minister informed the cabinet this morning that he had decided the referendum will be held on 9 April.'
Iceland's president triggered a referendum when he refused this month to sign a bill setting out the terms of repayment that had been approved by parliament.
It was the second time he had vetoed a bill on the issue and Icelanders rejected an earlier deal after a referendum in March 2010.
The government says the new deal has much better terms, but many Icelanders still believe it is unfair that taxpayers must foot the bill for mistakes made by private banks.
