Unprecedented situation

“As you know, Iceland is in an unprecedented situation, having seen the collapse of a significantly oversized banking system relative to GDP. It amounts to about almost 1,000 percent of GDP. The three main banks, accounting for 85 percent of the banking system, collapsed within a span of less than a week, creating very significant turmoil in the financial markets, in effect shutting down the foreign exchange market, and causing a dramatic depreciation of the krona.”

Transcript from an IMF conference call on Iceland


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