The referendum was held to approve the terms of a state guarantee on the debts of the Depositors' and Investors' Guarantee Fund ("Tryggingarsjóður innstæðueigenda og fjárfesta"), in particular a €4 billion loan from the governments of the United Kingdom and the Netherlands to cover deposit insurance obligations in those countries. The referendum was held under article 26 of the Constitution of Iceland after President Ólafur Ragnar Grímsson refused to counter-sign the corresponding Act of Parliament (known as "Icesave bill 2") into law on 5 January 2010.