The Icelandic president, Olafur Ragnar Grimsson, has stressed that the country's economy must not be broken as a result of the Icesave debacle.
Iceland has confirmed it will hold a referendum on 6 March on plans to repay the UK and the Netherlands debts owed from the collapse of the bank.
The country's parliament voted for a referendum earlier this month after the president vetoed the Icesave bill.
He told the BBC's Tanya Beckett that the British and Dutch are expecting the Icelandic taxpayer to shoulder the equivalent in UK terms of £700bn.
Icesave collapsed in October 2008, affecting thousands of savers who held deposits with the bank.