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October 11, 2008

Iceland Makes Strides With British And Dutch

Iceland found itself in a turmoil with the British after they froze funds in the online bank Icesave. The financial crisis in Iceland took a turn for the worse and left those that had funds in Icesave in a bad position. Iceland was able to reach a deal with the Netherlands in which they will reimburse Dutch depositors. They also made some progress in talks with the British in regards to the retail depositors of Icesave. Other issues are scheduled to be discussed in Reykjavik where British officials are having conversations with Icelandic officials.

It is reported that British savers have over four billion pounds locked in Icesave. The other day when Iceland nationalized their largest bank, Landsbanki, the funds were frozen. The Dutch reportedly have 1.6 billion euros in savings in Icesave. The settlement that the two governments came to involves a loan from the Dutch Central Bank. Depositor’s claims will be settled up to 20,887 euros.

Iceland is struggling to stay afloat after being on the verge of national bankruptcy. They have nationalize three of their largest banks and customers are no longer able to withdraw or deposit money. The banking system which had an abundance of British and other European accounts is teetering towards collapse. Initially Prime Minster Gordon Brown was a bit harsh about the situation. He has, however, managed to tone his rhetoric down when speaking about the crisis. He is now talking about working to resolve the situation instead of using a threatening tone.

The fate of Iceland is still up in the air. The rest of the world sits and watches for an outcome in the financial meltdown of the country. If the stock markets, credit crisis and housing crisis do not improve soon the fate of Iceland may be the fate of many other countries. Governments are still not rushing to join forces to fix the turmoil that has swept the globe. Food shortages and employment loss is making basic living very hard for many people and yet there is no emergency gathering of governments. It seems as if world leaders are being stubborn at a time when they can not afford to be.

As the global financial crisis continues, the amount of problems tat the world and individuals are experiencing increases. If we allow the situation to get further out of hand there is a chance solutions will be even harder to come by. Imagine the crisis the Iceland faces. Not knowing if the entire country is going to go bankrupt. Individuals are not sure if they will ever see their money that they had stored away in banks. That could happen in many places around the world if nothing is done.

As major businesses go under around the world it is clear that no one is safe. All we can do is sit and wait for our governments to stand up and take notice. Hopefully something will happen before it is too late or else we could all be in serious trouble very soon.

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