Emergency in Iceland

Posted on May 10, 2009 by

Iceland has always had a low unemployment rate, but its economy is weak, mainly based on the financial system and tightly linked to the international movements.

The global economical crisis of the financial field that has been going on worldwide since last Fall has deeply affected the economy of the island, that is now quickly going towards the crash. The inflation rate has been increasing and reaches numbers never reached before, while the Icelandic krona is experiencing a huge devaluation.

The previous Government tried to stop up this situation by nationalizing the three main banks of the country-the Landsbanki, the Glitnir and the Kaupthing, and started negotiations with Russia to obtain an emergency credit loan of 4 billions Euros that would allow the Icelandic economy to breath a bit.

You can get updates on this difficult situation on the web sites of any economical newspaper (i.e. in Italy on the il Sole24ore paper) of Western countries.

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