Looming "Iceland Bankrupty" | Millionaire Acts

Looming “Iceland Bankrupty”

Nowadays, we often hear a lot going bankrupt. There are a lot of individuals and private citizens that went bankrupt. Their house were foreclosed. Their private possessions were ripped off from them. There are a lot of companies going bankrupt with even the most established companies such as Washinton Mutual, Lehman Brothers, etc.

But have you heard of a country going bankrupt? Yes, you heard it right. Iceland is in the brink of bankruptcy. Now, it really is a problem.

Here is a series of events that might possibly end Iceland to go bankrupt:

Kaupthing, the largest bank in Iceland, was forced to put into administration by the Iceland Government. Regulators also took over Glitnir Bank hf and Landsbanki Islands hf, the second and third largest banks, respectively, last October 2008.

According to bloomberg data, the icelandic banks are saddled with about $61 Billion of debt and the government is seeking a loan from Russia and may ask for aid from the International Monetary Fund or IMF.

Fitch Ratings Ltd. cut Iceland’s long-term currency issuer default rating to BBB- from A-. The rating remains on negative watch, Fitch said. Furthermore, they also said that Iceland faces a very severe recession which will result in a further deterioration in bank’s domestic assets.

Iceland is now looking for a rescue from International Monetary Fund or IMF. It will be such a catastrophic scenario to see a country that had once become one of the best places to live in the world because of its high capita per income to be swallowed by the global financial crisis and eventually declare bankruptcy.

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