Steingrímur Sigfússon – Financial Times August 20, 2012
Iceland’s economy melted in the autumn of 2008. The world saw the demise of an entire national financial system. An overinflated banking sector collapsed in a week; the exchange rate of the krona plunged 40 per cent against the euro, inflation and interest rates jumped to 18 per cent, the standard of living fell sharply and the unemployment rate went from near zero to nearly 10 per cent. Debt piled up, revenues shrank and expenditure soared.
In late 2008 and early 2009, the outlook was dark. The question seemed not to be whether Iceland would default on its obligations, but when.