Iceland economic crisis - part II

Icesave was an online savings account brand owned and operated by the Landsbanki bank from 2006–2008 that offered savings accounts in two countries, United Kingdom and the Netherlands. They managed to attract over 300,000 customers in the United Kingdom, with deposits of more than €5 billion and 125,000 customers who deposited €1.7 billion in the Netherlands. When the banks collapsed in 2008, depositors were unable to access their money creating an international diplomatic incident. Iceland managed to survive the financial crisis by taking over the domestic units of its banks and leaving the foreign creditors with losses of the bad investment decisions. An slump in the krona against the euro offshore pushed the trade deficit into surplus within months. The transformation of economy came at a high cost, the banking system defaulted, but slow recovery signs are present. Read more about the economy of Iceland here. You can also watch a short documentary on the economic crisis and the events that followed.

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