Before the crisis, the Icelandic banks had foreign assets worth about 10 times the Icelandic gross domestic product (GDP), with debts to match.
This means that the state cannot make gurantees as the other european states have.
households are seeing payments on loans increased by up to 50%, and inflation may reach 30% or more this year, with salaries frozen and mass layoffs.
http://news.bbc.co.uk/1/hi/business/7658908.stm
Oh yea, and the UK gov. is going to sue iceland - and has frozen UK assets of KSF.
jenray
Pro 
I looked at their offer of high interest May, 2007, and decided against going with them...instinct told me to keep away from such a small country stretching itself so far, but, of course, didn't escape over here either because decided on Northern Rock instead...HLOL...but, at least, I haven't lost anything as I moved it out of there as soon as I could...government at the time was still dithering over what to do to rescue it...Iceland does seem to have got itself into a serious mess now...I believe it only has three quarters of a million people living there and three banks?? Slight overkill...