fjárfestingareignina

Fjárfestingareignina, also known as the Icelandic Financial Crisis, was a severe economic crisis that affected Iceland from 2008 to 2011. The crisis was primarily triggered by the country's heavy reliance on the international banking sector and a rapid increase in foreign currency lending, particularly in British pounds.

The crisis began to unfold in late 2007 when the Icelandic króna, pegged to the U.S. dollar, was devalued. This led to a significant drop in the value of the króna, which in turn caused a banking crisis. Many banks, particularly those with large exposures to the British pound, faced liquidity issues as the value of their foreign currency loans decreased.

The crisis was exacerbated by the collapse of the real estate market in 2008, which led to a significant increase in non-performing loans. The Icelandic government and the Central Bank of Iceland implemented a series of measures to stabilize the financial system, including capital injections into banks and the establishment of the Financial Supervisory Authority.

The crisis had profound social and political consequences. Unemployment reached over 10% in 2009, and many Icelanders faced significant financial hardship. The crisis also led to a political crisis, with the government of Prime Minister Geir Haarde resigning in 2009 due to a no-confidence vote in the Althing, the Icelandic parliament.

The crisis was resolved in 2010 when the Icelandic government agreed to a €6.5 billion bailout from the International Monetary Fund (IMF) and other creditors. The bailout included strict austerity measures, including cuts to public spending and tax increases. The crisis had a lasting impact on Iceland's economy, with the country's GDP contracting by over 6% in 2009. However, the economy began to recover in subsequent years, and Iceland emerged from the crisis with a more robust financial regulatory framework.