umbreytingarinnar

Umbreytingarinnar, also known as the Icelandic Financial Crisis, was a significant economic event that occurred in Iceland from 2008 to 2011. The crisis was triggered by the collapse of the Icelandic banking system, which was heavily exposed to the subprime mortgage crisis in the United States. The crisis began in October 2008 when the collapse of the Icelandic bank Landsbanki led to a run on other banks, causing a liquidity crisis.

The Icelandic government responded by nationalizing the banking system and injecting capital into the banks. However, the crisis had severe consequences for the Icelandic economy. The country's GDP contracted by 11.6% in 2009, and unemployment reached 11.4% in 2010. The crisis also had significant social and political impacts, leading to widespread protests and the resignation of the prime minister.

The crisis was eventually resolved through a series of bailouts and restructuring of the banking system. The Icelandic government received financial assistance from the International Monetary Fund and other international organizations. The crisis also led to significant reforms in the Icelandic banking system, including stricter capital requirements and increased oversight by the central bank.

Umbreytingarinnar is considered one of the most severe financial crises in Iceland's history. It had a profound impact on the country's economy and society, and it took several years for the economy to recover. The crisis also highlighted the vulnerabilities of the global financial system and the importance of regulatory oversight.