REYKJAVIK: People go bankrupt all the time. Companies do, too. But countries? Iceland was on the verge of doing exactly that on Thursday as the government shut down the stock market and seized control of its last major independent bank. That brought trading in the country's currency to a halt, with foreign banks no longer willing to take Icelandic krona, even at fire-sale rates. As the meltdown in the Icelandic financial system quickened, with the government seemingly powerless to do anything about it, analysts said there was probably only one realistic option left: for Iceland to be bailed out by the International Monetary Fund. "Iceland is bankrupt," said Arsaell Valfells, a professor at the University of Iceland. "The Icelandic krona is history. The IMF has to come and rescue us."
REYKJAVIK: People go bankrupt all the time. Companies do, too. But countries?
Iceland was on the verge of doing exactly that on Thursday as the government shut down the stock market and seized control of its last major independent bank. That brought trading in the country's currency to a halt, with foreign banks no longer willing to take Icelandic krona, even at fire-sale rates.
As the meltdown in the Icelandic financial system quickened, with the government seemingly powerless to do anything about it, analysts said there was probably only one realistic option left: for Iceland to be bailed out by the International Monetary Fund.
"Iceland is bankrupt," said Arsaell Valfells, a professor at the University of Iceland. "The Icelandic krona is history. The IMF has to come and rescue us."
The Prime Minister is furious that 300,000 bank customers are blocked from accessing deposits in online bank Icesave. There are also concerns that councils and police authorities might not be able to retrieve nearly £900m of taxpayers' money which is stranded in Icelandic bank accounts. Mr Brown told a press conference: "We are taking legal action against the Icelandic authorities. We are showing by our action that we stand by people who save." Alistair Darling, Chancellor of the Exchequer, added: "The Icelandic government, believe it or not, have told me yesterday they have no intention of honouring their obligations here."
The Prime Minister is furious that 300,000 bank customers are blocked from accessing deposits in online bank Icesave.
There are also concerns that councils and police authorities might not be able to retrieve nearly £900m of taxpayers' money which is stranded in Icelandic bank accounts.
Mr Brown told a press conference: "We are taking legal action against the Icelandic authorities. We are showing by our action that we stand by people who save."
Alistair Darling, Chancellor of the Exchequer, added: "The Icelandic government, believe it or not, have told me yesterday they have no intention of honouring their obligations here."
Greed.
They decided not to place their savings in local projects, went outside to gain more more more.
Risk got reward. Someone losses, someone gains.
Now they want to sue because Capitalism Worked.
Great Planet; Funny People Never underestimate their intelligence, always underestimate their knowledge.
Frank Delaney ~ Ireland
councils and police authorities
will, one hopes, be strictly regulated as to where they're allowed to put their money in future? If there's a future.
Hey, Alistair, it's called default. Being chancellor I would expect you to be clued up enough in financial matters to be familiar with the concept.
Bozos! A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
