The Icelanders have come up with a strong reluctance towards the repayment of the Anglo-Dutch debts, giving way to new negotiations with the creditors.

This denial by the Icelanders has added to the troubles of the already tottering economy.

"Some will vote 'No' to tell the world that Iceland won't accept this treatment, but studies have shown more than half believe that Iceland is ethically bound to pay back the debts", said Gudbjorg Andrea Jonsdottir, Director at Pollster Capacent.

As the repayment terms offered by Britain and the Netherlands seem easier, the Icelanders are quite likely to enter into a deal with them.

The surveys have predicted a likelihood of the Icelanders refusing the Icesave bill, which was rejected by the President as well, last year.

"Recovery may be delayed and prolonged because Iceland needs (foreign) money to address the structural imbalances that exist in its economy", said Antje Praefcke, an Analyst at Commerzbank.

"The liberalization of Icelandic capital markets will also take more time. Ultimately, I don't expect the IMF and the Nordic countries to let Iceland down, but it will be more difficult, with more negotiations and time needed", she added.

Fearing the fallouts, the Economy Minister Gylfi Magnusson said that the GDP may reduce by 5%, this year if the Icesave bill does not get through.