The FT notes:
Talks have collapsed between Britain, the Netherlands and Iceland about repayment of £3.4bn (€3.8bn) lost by depositors in the failed online bank Icesave, raising fears that the country will fail to meet its obligations.
The people of Iceland do not have that obligation.
They should now vote againts paying the debt. If UK and Dutch regulators did not stop mis-selling in their territories that is their fault.