Should a nation pay the debt contracted by some private citizens (bankers)? My clear answer and the historical answer is no way! If you make deals with private companies/individuals, they are the only responsible ones for whatever developments. Sue them but you should never pretend that a whole nation would pay for their failures.
However nowadays in Iceland, as in Greece or Ireland, Lithuania or Hungary, it seems that the fashion (fascist imposition by banksters, often foreign banksters) is that the nation must for some odd reason assume the debt contracted by private actors. This claim has no legitimacy whatsoever but that's what is being sold in the media as the normal thing to do: transfer bank problems to the nations. So the Irish ended buying German toxic banks with Irish names and addresses and the Icelanders are being pushed into paying from their budget the debts contracted by private venture Icebank before it was nationalized.
Obviously this is wrong: it is a brutal abuse and a clear case of imperialism.
Icelanders were somewhat lucky, as their president (a rare case of political honesty) vetoed the measure, widely opposed by the Icelander People (logically), who eventually got to vote and rejected it with 93% agreeing it was a unbearable abuse. But, as usual in these cases, the same measure is now being reintroduced with lesser modifications (a small decrease of the interest to be paid for the non-existent debt). The British and Dutch governments, representing creditors are happy but I doubt Icelanders are at all.
And I wonder if the measure will this time be approved, because it seems to me that nothing has really changed: Iceland is being demanded to assume a debt it never contracted as nation. It'd be like holding the USA responsible for the debts of Lehman Brothers or Bernard Madoff, you know. Can you imagine Banco Santander for instance, backed by Spain and EU maybe, demanding the USA to pay Madoff's debts? It makes no sense at all, right? Well, exactly that is what the UK and the Netherlands are demanding from Iceland or what Germany and the UK are demanding from Ireland. It's total abuse of power and the peoples should never swallow that junk.
I really hope they do not accept such abusive impositions or they may end up as Haiti, whom France forced to accept a massive "debt" as "reparations" for declaring independence and liberating all slaves. Debt that has been a brutal burden to the Caribbean nation till present day.