Iceland expected to turn down $5.3B bank failure repay

This confused me until I read the entire article. And to tell you the truth, I had no idea how many countries in Europe bailed out other countries. And I did not know how many countries needed to be bailed out.

From USA Today;

REYKJAVIK, Iceland (AP) — Still smarting from the crippling aftermath of the global financial crisis, grudging Icelanders were expected Saturday to vote down a $5.3 billion plan to pay off Britain and the Netherlands for debts spawned by the collapse of an Icelandic Internet bank.

The resounding “no” vote expected at the referendum is indicative of how angry many Icelanders are as the tiny island nation struggles to recover from a deep recession. The global financial crisis wreaked political and economic havoc on Iceland, as its banks collapsed within the space of a week in October 2008 and its currency, the krona, plummeted. The Icelandic government was the first to fall as a result of the meltdown.The deal would require each person to pay around $135 a month for eight years — the equivalent of a quarter of an average four-member family’s salary.

In case your not aware, this is happening to us. China and Japan own our debt. What do you think will happen to us if they want it repaid?

Last-minute talks between Iceland, Britain and the Netherlands broke down this week, despite the debtor countries saying they offered better terms — including a significant cut on the 5.5% interest rate in the original deal hammered out at the end of last year.

The British say their “best and final offer has been turned down.”

But Iceland continues to hold out for more, aware that any new deal must win substantial political and public support.

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