Overview

As the anniversary of the collapse approaches and Iceland formally pursues EU membership, it is important to gauge the reaction of international investors now that the Icelandic Government has unveiled its plan to re-capitalise Kaupthing, Landsbanki and Glitnir.

You may recall that in September last year, shortly after the collapse of Lehman Brothers and the UK Government’s controversial decision to use anti-terror laws to freeze the assets of one of Iceland’s biggest banks, Landsbanki, the Icelandic banking system collapsed almost overnight. In early October 2008, the Icelandic Parliament passed the Law on Authority for Treasury Disbursements due to Unusual Financial Market Circumstances, more snappily known as the Emergency Act.

To read more click View Briefing