June 26 (Bloomberg) -- Iceland’s parliament may reject an accord the government struck with the U.K. and the Netherlands to cover foreign depositor claims, threatening to reignite a diplomatic spat between the countries.

As many as 33 of the 63 lawmakers in the Reykjavik-based parliament may fail to back the agreement in its current form, party leaders and individual members of the chamber told Bloomberg. The Cabinet postponed discussion of the accord until next week.  26-Jun-09.

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