What exactly does the "Icelandic model" mean?

Not long ago, many experts predicted that the price of this financial crisis would be the bankruptcy of several large financial institutions. Obviously, these experts just guessed the beginning. To make matters worse, not only a few large institutions, but also a country went bankrupt.

10 10. On 6 October, Icelandic Prime Minister Hald issued an alarm to all citizens through a televised speech. "My fellow citizens, this is a real danger. In the worst case, Iceland's national economy will be involved in the whirlpool with banks, and the result will be the bankruptcy of the country. " At this time, Iceland, which he faced, was no longer the most beautiful and cleanest paradise in the world with rapid financial development, but a black utopia with foreign debts exceeding 654.38+0383 billion dollars and a sharp depreciation of its currency. Icelanders who used to be the happiest in the world live in fear of national bankruptcy and uncertainty.

National bankruptcy is not a joke.

In the United States, the bankruptcy of Lehman with a history of 158 was followed by the collapse of a large number of financial institutions. In Iceland, national bankruptcy has become a life-and-death defense line approaching all citizens. 10 10. On 6 October, Icelandic Prime Minister Hald issued an alarm to all citizens through a televised speech. "My fellow citizens, this is a real danger. In the worst case, Iceland's national economy will be involved in the whirlpool with banks, and the result will be the bankruptcy of the country. "

This small country with a population of only 320,000 used to be supported only by fisheries, but in the 1990s, the world entered a golden age of rapid growth of 10 years. Iceland's banking system sprouted rapidly at this time and expanded at a crazy speed. They have set up branches all over the world and issued a lot of loans, so banks have become the most powerful pillar of Iceland's economy. As of June 30th this year, the total assets of Kaupthing Bank hf, Landsbanki Islands hf and Glitnir Bank hf in Iceland were 14.4 trillion kronor, or about12.8 billion US dollars. In contrast, Iceland's gross domestic product (GDP) in 2007 was only 1.3 trillion kroner.

When bank assets accumulated in large quantities, Icelanders tasted the sweetness. The per capita GDP of this small country ranks fourth in the world, and its beautiful and clean environment and generous welfare policies make it an ideal city that the world yearns for. But when the subprime mortgage crisis hit, the country found that they were exactly what Buffett called "naked swimmers." Premier Hald admitted that Iceland faced "national bankruptcy" because its banking industry was almost completely exposed to the global financial shock.

At present, Iceland's foreign debt has exceeded $6,543.8+038.3 billion, but its GDP is only $6,543.8+09.37 billion. Iceland's own currency, the krona, has always been regarded as the riskiest currency in developed countries. On some trading platforms, the krona has disappeared. Since the beginning of 2008, the Icelandic krona has depreciated by 45% against the US dollar. 10 year 10 8, the Bank of Iceland announced that it would give up its efforts to peg the exchange rate of the Icelandic krona because it did not get enough market support.

Save Iceland

"If there is a time when the Icelandic people need to unite and show perseverance in adversity, then now is the time." Icelandic Prime Minister Hald mobilized his people like this. "I hope my family can discuss it together and don't let anxiety get the upper hand, although the prospect looks worrying. We need to explain to our children that the world is not on the edge of a cliff, and we must find inner courage to look forward to the future. "

654381October 7, Iceland launched a self-help operation on the banking system: announced the reform of the exchange rate system, took over large domestic banks, and sought a loan of 4 billion euros from Russia. It is estimated that the Icelandic government needs to bear the burden of bank assets 9 times of GDP. Following the nationalization of Glitnir, the third largest bank in China, last week, the Icelandic government announced that it would take over Landsbanki, the second largest bank, on June 7th 10, and Kaupthing, the first bank, on June 9th 10. Since then, all three major banks in Iceland have been nationalized. In terms of exchange rate, the Icelandic government abandoned the peg to the Icelandic krona exchange rate and implemented the linked exchange rate, linking the Icelandic krona to the euro.

The British and Dutch governments put pressure on Iceland to ask Icelandic banks to guarantee the deposit safety of British and Dutch depositors, while Russia and Sweden were the first two countries to lend a helping hand to Iceland. The Swedish central bank announced on the 8th that it intends to provide a loan of up to US$ 702 million to Kaupthing, Iceland's largest bank, to help enhance its liquidity, and at the same time "ensure Sweden's financial stability and ensure the smooth operation of the financial market". Gill halder, Iceland's prime minister, said on June 7, 65438/KLOC-0 that Iceland had not received any help from other western countries except the Nordic countries, so he was prepared to "make new friends" and apply for a loan of 4 billion euros (5.4 billion US dollars) from Russia. The purpose of this request for financial assistance is to