Iceland’s Financial Collapse


Iceland raised its benchmark interest rate from 12 percent to 18 percent as the country sought to stave off financial collapse.

The prime minister said another $4 billion in loans would be necessary to stabilize Iceland’s banks. The IMF has already granted Iceland a $2 billion loan, and several of the country’s banks have received money from Russia. The Financial Times reports IMF funding could soon run short, given the needs of many different nations.

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