Iceland Bankruptcy – Brink of Financial Meltdown

he island of Iceland might be the first country in “national bankruptcy” to follow in the steps of the credit crunch.

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Iceland is all but officially bankrupt

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.

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 (IMF).

Iceland Teeters On Bankruptcy

Iceland is getting closer to becoming the first nation to go bankrupt as a result of the subprime mortgage crisis and resulting squeeze on lending.

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[via –  iht , forbes ]

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