**The people of Iceland are preparing to vote on plans to repay the UK and the Netherlands debts owed from the collapse of Icesave bank.**The UK and the Netherlands want reimbursement for the 3.8bn euros (£3.4bn; $5.2bn) they paid out in compensation to customers in 2008.
Talks between the three countries broke down on Friday without agreement.
Iceland’s prime minister is urging voters to shun what she called a “meaningless” referendum.
Apology
The Icelandic government had hoped to avoid the vote by agreeing a new repayment plan before the weekend.
Iceland’s Prime Minister Johanna Sigurdardottir is calling for further talks to take place.
Polls indicate that the majority of voters will reject the referendum, the first in the country’s history.
A “no” vote could put billions of dollars of loans from the International Monetary Fund and other countries at risk.
Britain and the Netherlands want the money as repayment for bailing out customers in the Icesave online bank, which folded in 2008 due to the global financial meltdown.
Icelanders feel the plan should be rejected because they feel they are being penalised for the mistakes of the banking industry.
There is also anger against Britain for using anti-terrorist legislation to freeze Icesave assets in the UK.
Johanna Sigurdardottir told the BBC that Britain should officially apologise for its actions.
The Reykjavik government approved the repayment plan last December but it was blocked by Iceland’s President Olaf Ragnar Grimsson in January, which has led to the referendum being called.