However, the country’s banking sector debt was 150% of the country’s GDP and the country’s total debt reached 300% of its GDP. In 2008 the Icelandic financial crisis erupted, resulting in the collapse...

However, the country’s banking sector debt was 150% of the country’s GDP and the country’s total debt reached 300% of its GDP. In 2008 the Icelandic financial crisis erupted, resulting in the collapse of the country’s three major commercial banks following difficulties in refinancing their short-run debt.