London ( CNN ) -- An increasingly bitter dispute between the United Kingdom and Iceland over billions of dollars lost when banks collapsed is likely to end up in court , a top British government minister said Sunday . The British government has `` an obligation to get that money back , and we will continue to pursue that until we do , '' said Danny Alexander , the chief secretary of the Treasury . He was speaking Sunday after Iceland 's people voted to repeal a law aimed at solving the dispute . Six out of 10 voters in the referendum on Saturday opposed the law , the government said in a statement Sunday , saying turnout was high . Alexander called Saturday 's Icelandic vote `` disappointing , '' adding , `` We have a very difficult financial position as a country ... This money would help . '' `` There is a legal process going on and we will carry on through these processes , '' he said on the BBC 's `` Andrew Marr '' show . The battle results from the collapse of an Icelandic internet bank in October 2008 . Britain and the Netherlands came up with more than $ 5 billion to bail out savers in their own countries who lost money in the failure of Icesave -- an online retail bank branch of Landsbanki . They are now trying to claim the money back from Iceland . Some payments will go ahead later this year , Iceland 's government said Sunday , explaining that they were not affected by the vote . `` These partial payments are expected to cover close to a third of priority ( depositor ) claims . Moreover , latest figures on its assets indicate that the estate ( of Landsbanki ) will be able to pay over 90 % of claims for deposits , '' the government said in a statement . Under a European Union directive , Iceland owes compensation to Britain and the Netherlands . The Icelandic government has said it will honor its international obligations . Netherlands Finance Minister Jan Kees de Jager is `` very disappointed about the decision of the Icelandic electorate not to agree with the agreement reached between Iceland , the U.K. and the Netherlands , '' the Netherlands Finance Ministry said in a statement Sunday . `` The time for negotiations is over , '' de Jager said in the statement . `` Iceland remains obliged to repay . The issue is now for the courts to decide . '' The Netherlands Finance Ministry said it is consulting with the United Kingdom about further steps . The International Monetary Fund loaned Iceland $ 2.1 billion in November 2009 , and said repaying the money to the British and Dutch governments was a requirement of the loan . Iceland has begun moves toward applying for European Union membership , which Britain and the Netherlands could block . CNN 's Bharati Naik contributed to this report .
NEW : The Iceland says it is consulting with Britain on further steps . Iceland 's voters repeal a deal to repay savers who lost money when a bank collapsed . Iceland and Netherlands bailed out savers in their countries who lost money . They now want Britain to pay them back .