People in Iceland are preparing to vote in a referendum on plans to repay debts owed to the UK and the Netherlands in the wake of Icesave bank’s collapse.

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 the three countries broke down on Friday without agreement.

Iceland’s PM is urging voters to shun the “meaningless” referendum, called after the president blocked repayment.