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Finance / United Kingdom

Iceland Crisis Worsens As Landsbanki Nationalised

October 2008 | Corporate Financing News Alert

Since the recent nationalisation of Glitnir Bank, the crisis in Iceland has continued to worsen. A lot has happened since October 6: the króna has been pegged at ISK131/EUR and the government revealed that it has lined up an emergency EUR4bn (US$6bn) capital infusion from Russia, though this is yet to be signed. As for the banking sector, the government enacted new legislation allowing it to step in and take operational control of the banking sector hastily with the nationalisation of the country's second-largest bank, Landsbanki. It also injected EUR500mn in capital into Kaupthing Bank, the country's largest bank.

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