STOCKHOLM (AFP) - Iceland's finance minister warned Saturday of the consequences of a 'no' vote in the Icesave referendum, saying the issue was too complex to be put to popular vote and that he hoped a new agreement could be reached through talks with Britain and the Netherlands.

"It is unique that such a complex question, which stirs up conflict with other countries and has to do with complicated financial issues...be put to a referendum," Iceland's finance minister Steingrimur Sigfusson said in an interview with Swedish daily Svenska Dagbladet.

"Even in countries with a strong tradition of referendums, people don't vote on things like taxes," he said, warning that a 'No' could translate into "a risky situation with great political and economic consequences" for Iceland.

Iceland's President Olafur Ragnar Grimsson has refused to sign legislation approved by parliament that planned for a 3.8 billion euro (5.4 billion dollars) payout to London and The Hague for compensating British and Dutch savers who lost money in the October 2008 collapse of the Icesave bank.

He instead referred the issue to a referendum, citing public opposition. The vote is expected to be organised before March 6.

The controversial Icesave issue "won't just disappear if the people vote 'No'," Sigfusson warned, adding it could "mean additional delays in (Iceland's) entire economic recovery. We have enough problems as it is," he said.

Sigfusson said the Icelandic government would have to abide by the electorate's decision "because it says in our constitution that we have to hold" a referendum, "but if we could get a broad alliance to agree on an alternative, we could maybe avoid" putting the issue to a popular vote, he said.

A Capacent Gallup poll published earlier this week by public broadcaster RUV suggested 62 percent of Icelanders would vote "no" in the referendum on the bill to compensate Britain and the Netherlands over the failure of Icesave bank.