ForexInfoCenter

Iceland’s Geyser crisis - any lesson for CEE?

Posted by Danske Bank A/S in October 10th 2008  
This week Iceland has been thrown into its worst financial and economic crisis ever with the collapse of its financial markets. The "Geyser Crisis", is a result of the combination of a massive increase in Iceland's foreign debt, a very leveraged expansion of the Icelandic banking sector abroad, and the global credit crunch. It is estimated that the balance sheets of Icelandic banks were in total around 10 times larger than GDP in Iceland before the collapse. The macro implications of the

Read More...

Filed under: Fundamental