Iceland and the International Monetary Fund Intent. The conditionalities include details of Banking Sector restructuring, changes to Fiscal Policy including government austerity and changes to exchange rate policies. Following the global financial crisis in 2007-2008 Iceland's banking sector collapsed leading to wide ranging unemployment and a lessening of support for the Icelandic currency - the Icelandic Krona ISK. This was triggered by an insolvency of the private banking sector. The largest Icelandic banks had liabilities in excess of 80 percent of GDP . Iceland requested assistance from the IMF and from its Nordic partners in the Nordic Council. The goal of Iceland in this market intervention
History of Iceland stop to that when the war began in September. Iceland demanded Britain allow it to trade with Germany, to no avail. The occupation of Denmark by Nazi Germany began on 9 April 1940, severing communications between Iceland and Denmark. As a result, on 10 April, the Parliament of Iceland took temporary control of foreign affairs (setting up what would be the forerunner of the Ministry for Foreign Affairs) and the Coast Guard. Parliament also elected a provisional governor, Sveinn Björnsson, who later became the Republic's first president. Iceland became "de facto" fully sovereign with these actions. At the time, Icelanders