Voters in Iceland have overwhelmingly rejected proposals to pay the UK and the Netherlands in the wake of collapse of the Icesave bank.

With a third of results counted, 93% of voters said “No” in a referendum.

Iceland’s prime minister says her government will remain in office and continue to seek a repayment deal.

The British and Dutch governments want reimbursement for the 3.8bn euros (£3.4bn; $5.2bn) they paid out in compensation to customers in 2008.

Talks between Iceland, the UK and the Netherlands three countries broke down on Friday without agreement.

Prime Minister Johanna Sigurdardottir said she would not vote in Saturday’s poll as her government was seeking to continue the negotiations.