The financial crisis in Iceland in 2008-2009 is the economic crisis in Iceland , which, with the onset of the global economic crisis, was caused by the collapse of the three major banks of the country due to difficulties in refinancing their short-term debts and the panic closure of deposits by UK and Dutch depositors. Regarding the size of the country's economy, the crisis of 2008-2009 in Iceland is the largest economic disaster in history on the scale of one state [1] .
The financial crisis had serious consequences for the Icelandic economy : the country's currency fell by half against the dollar, foreign currency transactions were actually suspended for many weeks, the market capitalization of the Icelandic stock exchange, in which 60% of the assets were shares of bankrupt banks, decreased by more than 90 % [2] .
Iceland became the first developed country in 30 years to turn to the International Monetary Fund for help [3] .
Prime Minister Geir Horde, in an appeal to citizens, warned that the country could become bankrupt [4] . The economic situation in the country caused widespread discontent and protests, which led to riots in Reykjavik on November 23, 2008 [5] . The deepening crisis fueled further unrest, which led to the resignation of Iceland's Minister of Commerce Bjorgvin Sigurdsson [6] on January 25, 2009, and on January 26, 2009, Iceland’s Prime Minister Geir Horde announced the immediate resignation of the entire government [7] .
On February 1, 2009, the interim government was led by Johanna Sigurdardottir , representing the Social Democratic Alliance led by a coalition with the Left Green Movement, with parliamentary support from the Progressive and Liberal Parties. After the parliamentary elections in April 2009, the government of Johanna Sigurdardottir from the Social Democrats and the Left-Green became permanent. With it, in contrast to the “austerity” in continental Europe, elements of progressive taxation were introduced in Iceland instead of a flat tax rate, student scholarships were increased, and citizens were able to repay incomplete bank loans or freeze them [8] ..
Reykjavik received significant foreign loans - the IMF allocated $ 2.1 billion to Iceland (November 2008), and four Scandinavian countries (Finland, Sweden, Norway and Denmark) - $ 2.5 billion [9] .
On January 3, 2010, the Icelandic Parliament passed a bill to pay $ 3.4 billion to investors from the UK and the Netherlands [10] , but Icelandic President Olafur Ragnar Grimsson vetoed the bill. [11] The parliament appointed on March 6, 2010 a popular referendum on the adoption of a bill on the payment of compensation to investors. 90% of Icelanders voted against compensation [12] .
On February 17, 2011, the Icelandic Parliament approved the bankruptcy payments of Icesave, but President Olafur Ragnar Grimsson did not sign an agreement with the UK and the Netherlands and granted the people the right to resolve this issue in a referendum. 57.7% of Icelanders voted against compensation [13] .
Since 2011, the country's economy has been growing, one of the first in Europe it has returned to the pre-crisis level [3] .
- Crash Banks
- Glitnir banki
- Landsbanki Íslands
- Kaupþing banki
Notes
- ↑ Iceland: Cracks in the crust | The economist
- ↑ Loki Hassle - Offline Publications - Online Business Magazine
- ↑ 1 2 Three examples of devastating banking crises that have been overcome - Ministry of Finance
- ↑ Koksharov A. Geyser does not heat // Expert Online , October 9, 2008
- ↑ Artyom Oparin. It became hot in Iceland . RBC daily (November 25, 2008). - Anti-government rallies led to clashes with the police. Date of treatment November 26, 2008. Archived March 19, 2012.
- ↑ Iceland's Minister of Commerce resigned , RBC (January 25, 2009).
- ↑ The Government of Iceland resigned from the BBC (January 26, 2009).
- ↑ Denis Pilash . Left on the edge of the world. Part 2: Iceland // Spilné . 01/12/2017
- ↑ Kuznetsova N.P. Iceland - the first victim of the global crisis // Bulletin of St. Petersburg University. Series 5: Economics. - 2009. - No. 2. - S. 22
- ↑ Iceland will pay $ 3.4 billion to foreign investors
- ↑ Iceland refused to pay compensation to foreign investors
- ↑ Icelanders voted against payment of compensation to foreign investors
- ↑ The people of Iceland refused to pay the debts of bankers
Links
- Iceland: From the Cod Wars to the Financial
- Russia wants to save Iceland because of the long-standing offshore relations of officials and businessmen . // newsru.com with reference to The New Times. Date of appeal May 25, 2011.