We have heard some of the major investment banks go bust during the current financial crisis but what a whole country? But it could really happen and pretty soon if things don't work out well for Iceland!
All the top 3 banks in Iceland have run into trouble and no Western European country has come to its rescue so far. All they need is 4 billion euro and none of its friends have come forward. On the contrary to its NATO members response Russia has shown interest and is in talks at the moment and obviously they are doing it for much more than economic reasons. But this does not come out well then Iceland can go bankrupt. The following is the excerpt from a news report
Iceland took control on Thursday of its biggest bank, Kaupthing, to try to shore up a teetering banking system.The state has now seized control of three of the nation's major banks after Landsbanki and Glitnir were taken over earlier this week.
At the center of a financial hurricane which has claimed several of the world's biggest banks, Iceland's prime minister has warned of the risk of national bankruptcy.
The central bank has tried then abandoned attempts to prop up its battered currency.
No comments:
Post a Comment