Cual será el siguiente país en caer....?Iceland PM: Country Facing Insolvency; Will Propose Fin Bill
Mon, Oct 6 2008, 18:39 GMT
Iceland Prime Minister Geir H. Haarde said Monday the country faced national insolvency and said he will propose a bill to parliament giving the government sweeping power over the country's financial system.
Haarde said his government had been meeting all weekend to hash out some sort of solution to the extremely challenging financial conditions, as Iceland's currency plummeted and credit prices for Icelandic banks and the government skyrocketed amid heightened financial tension. "There is a very real danger, fellow citizens, that the Icelandic economy, in the worst case, could be sucked with the banks into the whirlpool and the result could be national bankruptcy," Haarde said in an address to the nation Monday.
The Prime Minister said on Sunday he believed Icelandic banks would be able to continue operations for the moment, but that the situation "completely" changed for the worse Monday, as major credit lines to the banks closed up. "I will present immediately a bill to parliament which will allow the exchequer to address the current situation on the financial markets," Haarde said in the speech. "By making these changes in legislation we will adapt the banking system to Icelandic circumstances and rebuild the trust of foreign operators in Icelandic banking and financial operations."