THE SIGHT OF A BANKRUPT CURRENCY
on the edge of bankruptcy. Its government is so bankrupt it can’t help its bankrupt banks.
The country’s total debt is almost 1 000% of its gross domestic product. Its former friends in Europe no longer want to come to its aid and Iceland has had to approach Russia for an emergency loan.
The value of its currency has collapsed. Nevertheless, Iceland last week reduced its bank rate from 14,5% to 12% in an effort to save its economy. Inflation is less important.