The Analysis Of International Debts Crisis In Iceland

Three major Banks in northern Europe, Iceland, declared there bankruptcy in sequence from the last part of September in 2008.As a result, a plunging stock market and the sharp devaluation of Icelandic Krona lead the government rise its foreign debts over 138.3 billion US Dollars, Comparing with the GDP at 19.37 billion US Dollars only in 2007. A Crisis of "National Bankruptcy" has been confronted in Iceland. The government of Iceland has to request assistances from Russia which is a former rival, in the content of government organizing, residents'deposits and the diplomatic battle with UK. Iceland has become the first western developed country which accepted the loan from IMF since 1976, trigging the Eurozone development and bank privatization in 2000.However, this crisis in Iceland can be a typical and distinctive case as well. By analyzing this case, internal and external causes of this crisis can be explored for the summary of experiences. In terms of our country, this study could firstly, suggest and enhance the development of both virtual and substantial economy in a coordinating way. Secondly, it could tight the supervising of finance development. Thirdly, our residents'deposits can be protected preferably. And finally, some beneficial enlightenment would support the development of our economy.