A country hailed as an economic success, happy population, energy efficient, and a country which has a state religion: Iceland is now feeling the sting of the financial crisis.
Seems, regardless of qualifications, the turmoil is sparing no one… well no one that benefitted from the leverage of credit in the last 10 years.
A primer on Iceland:
Iceland has some of the world’s highest levels of economic and civil freedoms. As of 2007, Iceland is ranked as the most developed country in the world by the United Nations’ Human Development Index. It is also the fourth most productive country per capita, and one of the most egalitarian, as rated by the Gini coefficient. Icelanders have a rich culture and heritage, such as cuisine and poetry, and the medieval Icelandic Sagas are internationally renowned. Iceland is a member of the UN, NATO, EFTA, EEA and OECD, but not of the European Union. The country is a candidate for a non-permanent seat at the UN Security Council.
The situation now:
Iceland acts to avoid bank chaos
Icelanders on the financial crisis in their country
Iceland’s government has drafted emergency legislation to try and salvage the country’s banking system.
Iceland agrees emergency legislation
Without the legislation, Iceland’s Prime Minister said the country was facing the real possibility of bankruptcy