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.
