Saturday, October 18, 2008

National Bankcruptcy

This is how New York Times described Iceland as its economy is facing tragic financial crises, to the extent that their currency, has turned to be priceless. Financial analyst never really imagined that an industrialized country like Iceland will suffer such crises. Years ago, its banks had propelled years of significant growth, lending so freely that their assets grew to many times the size of their economy, however the boom had turned to be bust.
There were reports that Iceland asked Russia for a loan amounting to 4 billion earus to avoid financial collapse but sadly there were reports that Russia was not yet ready to extend loan to the former.
Iceland is not the only country worlwide that is suffering from financial constraints, there are lots of industrialised and developing countries that is now in the midst of the said dilemma. Prime ministers were trying to call for Forums for all heads of different nations to address the problem, before it finally hit the worst scenario.