Tuesday, 28 October 2008

Refunded in full

Only a year ago many Icelandic companies were flying high buying property abroad and investing in many businesses.

I always wondered where the money came from, as Iceland to my knowledge has not many natural sources except their inexpensive way making electricity and heating up houses due to the heat produced by the seismic activity beneath the island. Everything else has to be imported from abroad.

Today the picture is completely the opposite. Iceland is in big trouble with their national finances, and they are now trying to borrow money in order to save their economy from total collapse amidst the global economical decline.

Also here in Finland the aftermaths of the touch and go collapse of the Icelandic economy can be seen, and one financial bank owned by Icelanders was taken over by their Finnish employees and sought for financial subsidies from the Finnish government in order to be able to refund all the money deposited by their clients.

Currently only up to 50.000 Euros of deposited money in bank accounts are guaranteed to be paid back to the customers in case of the bank is not able to do.

Fortunately for the 10.000 clients of the bank in question now three Finnish banks in are now lending the money needed to refund their clients in full.

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