Media playback is unsupported on your device
UK and Netherlands to sue Iceland over lost deposits
10 April 2011 Last updated at 18:39 BST
The UK and Dutch governments are preparing court action against Iceland to recover 4bn euros (£3.5bn) lost when the country's bank system collapsed.
It follows a referendum in Iceland which rejected a repayment plan.
The UK said it was "disappointed" by the "no" vote, while the Dutch finance minister said the time for negotiations was "over".
Joe Lynam reports.
