Icelandic polling stations closed at 22.00 and initial results are being released immediately.
Voter turn out was lower than in the last parliamentary election.
With 74,151 votes counted so far nationally, 68,993 of voters have chosen to reject the December Icesave repayment deal. 93.1 percent of votes nationally have been ‘no’ votes and 1.6 percent ‘yes’.
19,300 people voted in Reykjavik North. 356 said yes, 17,738 said no and 1,206 empty ballots were cast in protest. 19,500 people voted in the Southwest region. 250 voted yes, 18,350 voted no, 850 ballots were empty and 50 were invalid.
Prime Minister Johanna Sigurdardottir told RUV that she is not at all surprised at the result because the law the people were voting on is in fact no longer relevant as a better deal has already been offered. Finance Minister Steingrimur J. Sigfusson said he is personally surprised at how many people voted yes. Both say they are confident that the referendum outcome will not break up the government.