05 October 2008

Iceland economic troubles

Odds are you won't hear Newfoundland nationalists speaking too loudly about Iceland these days.

Not so very long ago it was a source of inspiration.

Iceland's prime minister and central bank officials held emergency talks on Sunday to deal with the country's growing economic problems.

That's just the latest effort.

But last week the Icelandic government nationalised Glitnir, one of its largest banks, and a large investment house collapsed. Now Kaupthing, Iceland's largest bank, is the focus of nervous investors, and the Icelandic krona plunged more than 20 per cent against the dollar last week as traders fretted about the implications of the bail-outs.

-srbp-