Iceland is Bankrupt : Financial Collapse

Iceland, in Financial Collapse, Is Likely to Need I.M.F. Help

Iceland’s financial system collapsed Thursday, and analysts said it was probably only a matter of time before the country would have to turn to the International Monetary Fund for help.

Such a move, which would make this small island nation the first sovereign state to fall victim to the credit squeeze that began last year, would require it to accept harsh measures to restore fiscal and monetary stability.

“Iceland is bankrupt,” said Arsaell Valfells, a professor at the University of Iceland. “The Icelandic krona is history. The only sensible option is for the I.M.F. to come and rescue us.”

October 9, 2008

http://www.nytimes.com/2008/10/10/business/worldbusiness/10icebank.html?scp=2&sq=imf&st=cse



Iceland’s Banks Face Overseas Claims

Like several other European countries, Britain is trying to recover deposits stranded in Icelandic banks that failed in the last two weeks, as the country’s financial system collapsed.

October 10, 2008

http://www.nytimes.com/2008/10/11/business/worldbusiness/11icebank.html?ref=business