By: Inoljt, http://mypolitikal.com/
Iceland is a small country in big trouble.
During the heady times of economic growth, its banks expanded operations far beyond what the country could possibly support. When the global financial crisis came, all three collapsed. Millions of depositors in Britain and the Netherlands would have lost their savings.
When banks collapse nowadays, fortunately, governments intervene. The governments of both Britain and the Netherlands guaranteed the accounts of their citizens. In total, this cost said countries approximately 3.9 euros (or 5.3 billion dollars).
Understandably, said countries were also angered at picking up the tab of Iceland’s failed banks. The root of Iceland’s current troubles lies in their demands that Iceland repay the €3.9 billion. To force Iceland’s hand, Britain – in a rather mean gesture – used anti-terrorism laws to freeze Iceland’s financial assets. This helped crush the country’s economy.
Now, there are two problems with the demands of Britain and the Netherlands.