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Iceland



Events: (Note that this is not the preferable method of finding events because not all events have been assigned topics yet)

The British financial website “This is Money” warns about the stability of the Kaupthing Edge banking product. Kaupthing Edge is a brand used to attract depositors by the Icelandic Kaupthing Bank. In response to a reader’s question about the brand’s soundness, correspondent Alan O’Sullivan points out that the rating agency Moody’s has recently described Icelandic banks as “fragile” and that its borrowing costs have increased 400% in the last year. For this reason, analysts think it is far more likely to default than any other European bank. As a result, O’Sullivan recommends that savers do not maintain balances on accounts with the bank in excess of the maximum limit on deposit insurance. [This is Money, 2/22/2008] Kaupthing Bank will collapse seven and a half months later. [Reuters, 10/9/2008]

Entity Tags: Kaupthing Edge, Alan O’Sullivan, This is Money, Kaupthing Bank

Timeline Tags: Global Economic Crises

Mohammed bin Khalifa al-Thani, a member of the royal family of Qatar, pays $280.4 million for a 5% stake in the Icelandic Kaupthing Bank (see February 22, 2008). The bank’s shares have been falling on Iceland’s stock exchange, down 57% in the last twelve months, and the bank has been buying them back itself in an attempt to boost its stock price. The purchase makes al-Thani the third largest shareholder in the bank. [Forbes, 9/22/2008] Seventeen days later, the bank will be on the verge of collapse and will be seized by the government of Iceland. [Reuters, 10/9/2008]

Entity Tags: Kaupthing Bank, Mohammed bin Khalifa al-Thani

Timeline Tags: Global Economic Crises

The government of Iceland takes a 75 percent stake in the country’s third-largest bank, Glitnir, after the bank runs into short-term funding problems. [BBC, 2/2/2009]

Entity Tags: Glitnir

Timeline Tags: Global Economic Crises

The government of Iceland offers an unlimited guarantee for all savers in local banks. In addition, Iceland’s parliament passes emergency legislation enabling the government to intervene extensively in Iceland’s financial system. [BBC, 2/2/2009]

Timeline Tags: Global Economic Crises

The government of Iceland takes control of the country’s second and third largest banks, Landsbanki and Glitnir; it already had a majority in Glitnir (see September 29, 2008). The financial crisis hit Icelandic banks so severely because they owe relatively more money than banks in other countries. When the crisis starts in earnest, they owe around six times the country’s total gross domestic product. Therefore, when the world’s credit markets dry up, they are unable to refinance their loans. [BBC, 2/2/2009]

Entity Tags: Landsbanki, Glitnir

Timeline Tags: Global Economic Crises

Following the seizure of two Icelandic banks by that country’s government (see October 7, 2008), the British government invokes anti-terrorism legislation to seize Icelandic assets in Britain. Iceland’s Prime Minister Geir Haarde criticizes Britain, saying he is upset and shocked that it has used “hostile” anti-terrorism legislation to freeze Icelandic banks’ assets. However, British Prime Minister Gordon Brown condemns Iceland’s handling of the collapse of its banks and its failure to guarantee British savers’ deposits. He says Iceland’s policies are “effectively illegal” and “completely unacceptable.” Iceland will later threaten legal action against Britain. [BBC, 2/2/2009]

Entity Tags: Gordon Brown, Geir Haarde

Timeline Tags: Global Economic Crises

Iceland’s government takes control of the country’s biggest bank, Kaupthing. This follows a decision by the British government to invoke anti-terrorism legislation to freeze Icelandic assets in Britain (see October 8, 2008). [BBC, 2/2/2009]

Entity Tags: Kaupthing Bank

Timeline Tags: Global Economic Crises

The Central Bank of Iceland cuts the country’s interest rate by 3.5 percent to 12 percent. Interest rates had previously been at a record high of 15.5 percent. [BBC, 2/2/2009]

Entity Tags: Central Bank of Iceland

Timeline Tags: Global Economic Crises

October 20, 2008: New Banks Formed in Iceland

Iceland’s financial authorities formally announce the establishment of new Glitnir, Landsbanki, and Kaupthing banks. The old banks were taken over by the government two weeks previously as their condition had deteriorated due to the global credit crisis (see October 7, 2008 and October 8, 2008). [BBC, 2/2/2009]

Entity Tags: Glitnir, Landsbanki, Kaupthing Bank

Timeline Tags: Global Economic Crises

The Central Bank of Iceland raises its key interest rate to 18 percent from 12 percent due to problems in the country’s banking system. [BBC, 2/2/2009]

Entity Tags: Central Bank of Iceland

Timeline Tags: Global Economic Crises

The International Monetary Fund (IMF) approves a $2.1 billion loan for Iceland, whose economy has been devastated by the global financial crisis. Iceland becomes the first Western European nation to get an IMF loan since Britain in 1976. [BBC, 2/2/2009]

Entity Tags: International Monetary Fund

Timeline Tags: Global Economic Crises

The annual rate of inflation in Iceland rises to a record high of 17.1 percent. [BBC, 2/2/2009]

Timeline Tags: Global Economic Crises

The International Monetary Fund (IMF) says Iceland, which has been devastated by the global financial crisis, has taken the first important steps towards restoring financial stability. It says the key objective of stabilizing Iceland’s currency, the krona, is being met. [BBC, 2/2/2009]

Entity Tags: International Monetary Fund

Timeline Tags: Global Economic Crises

The Icelandic finance ministry says the country’s economy is forecast to shrink by 9.6 percent in 2009. In addition, it predicts no growth in 2010. [BBC, 2/2/2009]

Timeline Tags: Global Economic Crises

Prime Minister of Iceland Geir Haarde calls a general election for the spring, two years early. The decision to have early elections is triggered by the global financial crisis, which has hit Iceland particularly badly. Haarde adds that he will not stand again because he has throat cancer. Two days previously, protesters angry at the economic crisis had surrounded his car, banging on its windows and pelting it with eggs. [BBC, 2/2/2009]

Entity Tags: Geir Haarde

Timeline Tags: Global Economic Crises

Icelandic Prime Minister Geir Haarde announces the immediate resignation of the country’s government. The government became unstable when Iceland was hit particularly hard by the global financial crisis and the government had to take over three major banks. Haarde had already called an early election in Iceland (see January 23, 2009), but could have remained in office until voting. However, talks about continuing until the election with his coalition partner, the Social Democratic Alliance, break down and he leaves office. [BBC, 2/2/2009]

Entity Tags: Geir Haarde, Social Democratic Alliance

Timeline Tags: Global Economic Crises

Following the resignation of the previous cabinet (see January 26, 2009), a new government is formed in Iceland by the Left-Green Movement and the Social Democratic Alliance. The new government will be in office for only a few months, until fresh elections in the spring. New Prime Minister Johanna Sigurdardottir sets out her government’s plan to deal with the financial crisis. She says her priority will be to replace the central bank’s board, which failed to prevent the collapse of the country’s banking system. She also says she will ask a parliamentary committee to look into joining the EU. [BBC, 2/2/2009]

Entity Tags: Social Democratic Alliance, Left-Green Movement, Johanna Sigurdardottir

Timeline Tags: Global Economic Crises

The US spends more than any other nation in the world on health care, but ranks only 50th among 224 nations in life expectancy, according to the 2009 CIA World Factbook. Experts say that this fact could raise serious questions in the debate over health care reform. Americans have an average life span of 78.1 years; the populations of 49 other nations live longer, on average. Japan is first in life expectancy, at 83 years; Australia, Iceland, Italy, San Marino, Switzerland, Andorra, Canada, and France round out the top 10 countries. Other countries, such as Sweden, Norway, Denmark, Singapore, Greece, Spain, and Portugal also do better than the US in life expectancy. The bottom 10 nations are, in reverse order, Sierra Leone, Afghanistan, Zimbabwe, Lesotho, Zambia, Chad, Uganda, Swaziland, Mozambique, and Guinea-Bissau, with life spans ranging from averages of 41 to 48 years. Some experts note that the US is the only developed nation to have a virtually completely privatized health care system. “What we are able to find in the industrialized world is that life expectancy will be influenced in a beneficial manner to the extent that health care expenditure is publicly financed,” says public health professor Harvey Brenner. “The higher the government expenditure on health care, the lower will be the mortality rate.” A study from the University of Chicago shows that a single-payer system—government-run health care—may be associated with higher life expectancy. The governments of such nations as Norway, Sweden, Denmark, Australia, and Canada have government-run health care, and their citizens have some of the longest life spans in the world. The author of the study, Bianca Frogner, writes: “Inevitably the conversation about reforming our health care system focuses on the question of what are we getting for our money and how are others doing with their health care dollars. Life expectancy, along with mortality and morbidity rates, are fairly straightforward numbers to rely on.” Other comparisons show that Scandinavian and other European countries have lower birth mortality numbers than the US, though babies born with abnormally low birth weights tend to fare better in the US system than in the Scandinavian systems. [CNN, 6/11/2009]

Entity Tags: University of Chicago, Bianca Frogner, Harvey Brenner

Timeline Tags: US Health Care

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