Poor Iceland

According to the left-liberal weekly newspaper 168 óra, Iceland will be fundamentally changed by the collapse of its banks and the drop in value of the krona. "Just like its current plight, Iceland owed its former prosperity to its banks. ... The Icelanders had grown accustomed to prosperity but now they have to be bailed out. The central banks of neighbouring Denmark and Norway have already provided a modest sum in emergency aid. Russia, too, surprisingly announced an unhoped-for loan [of five billion dollars]. Ultimately however the decisive help will come from the International Monetary Fund (IMF). ... Whatever happens, the Icelanders will have to accept that the prosperity generated by their banks is a thing of the past. What they are left with is their fisheries, tourism and perhaps trade. It may well be that Iceland goes from being the most expensive country in Western Europe to the cheapest - and becomes a popular destination for international shopping sprees."

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