Page last updated at 19:31 GMT, Tuesday, 28 October 2008
Financial crisis: World round-up

Iceland's central bank has raised its key interest rate to 18% from 12% as it battles against financial collapse. Here, BBC website readers in the country give their reaction and speak of the impact the rate rise will have on them.


I'm in quite a fortunate position as I don't have any debts. But I have had most of my savings in "safe" funds in Iceland which are now frozen and nobody knows how much is left of it.

Bjorgvin Hilmarsson

In the end my savings were not safe at all. The small portion that I had in a normal account should still grow more with higher interest rates so in that sense this move is good for me, but I know many people who have mortgages and student loans who are really beginning to suffer because of the current situation.

This will mean more families and companies going bankrupt. There seems to be a lot of confusion among our politicians about what to do and this is something that I find very frustrating.

What we need are experts to lead us out of this financial mess, not politicians who have no experience in this area. I think it's time to kick them out and give others a go - they couldn't be any worse.


Bergur Gunnporsson

I am very disappointed about this increase in interest rates. This will cause many companies to go under and will put extra pressure on households.

I thought it was enough as it was. People have lost a lot of their savings and pensions and I have heard that young males aged 25-35 who are heavily indebted are committing suicide as they can't bear the heavy interest payments.

Does the International Monetary Fund want to kill all Icelanders and drive them away from their beloved country?

If the international community wishes to preserve and sustain a culture and a language they should do something else other than to punish those who are not guilty as charged. I did not personally make those banks insolvent.


It was quite a shock to learn this morning that the interest rate had been hiked to 18%. Everyday is a surprise. It really looks like no one knows where Iceland is going.

For expatriates like myself, it has harsh consequences. Iceland has entered the winter sooner that expected. Everything is frozen - from roads to bank accounts.

Without even mentioning the plummeting value of the currency, the Icelandic Króna is subjected to a very strict policy the central bank established.

The drop in value of the Icelandic Krona means that in practical terms, I have resigned myself to forgetting about buying a flight ticket to go home for Christmas.

Credit cards are not accepted abroad and banks have no foreign banknotes whatsoever.

It will be a long winter.

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