fjármálakreppan

The Icelandic financial crisis, known in Icelandic as fjármálakreppan, was a severe economic and political crisis that occurred in Iceland in late 2008. It involved the collapse of all three of Iceland's major privately owned commercial banks: Kaupthing Bank, Landsbanki, and Glitnir. These banks had grown rapidly in the years prior to the crisis, fueled by significant borrowing, and their failure led to a dramatic devaluation of the Icelandic krona and a sharp decline in the country's stock market.

The crisis had profound consequences for Iceland. The government was forced to nationalize the banks and seek emergency loans from the International Monetary Fund. The Icelandic stock market index, the OMX Iceland 15, lost nearly all of its value. Many businesses faced bankruptcy, and unemployment rose significantly. The crisis also triggered widespread public protests and a period of political instability.

In response to the crisis, Iceland implemented capital controls to prevent money from leaving the country and underwent a period of economic restructuring. The government also pursued legal action against some of the former executives of the collapsed banks. While the road to recovery was challenging, Iceland's economy eventually stabilized, and the country has since made significant progress in rebuilding its financial sector and broader economy. The fjármálakreppan remains a significant event in modern Icelandic history, offering lessons on financial regulation and economic resilience.