Russia, Banks and Denials: Iceland's Audacious Return From Hell
- Iceland marks the 10th anniversary of dramatic banking crisis
- Officials recall hectic days when country was almost insolvent
The bronze Leifur Eiriksson statue stands near the Hallgrimskirkja church f in Reykjavik.
Photographer: Spencer Platt/Getty Images EuropeIn the final months of 2008, officials at Iceland’s central bank were figuring out where to turn for help, and pretty much all options were on the table: the Russians, the Chinese, the Americans, or some sort of international package.
Sturla Palsson, a director in charge of international operations at the central bank in Reykjavik since 2005, recalls appealing to one of Wall Street’s biggest banks to help him convince Iceland’s prime minister, Geir Haarde, that the situation was dire and a rescue package was needed. He also recalls giving Washington, D.C., the impression that his country might be about to receive a 4 billion euro ($3.5 billion) loan from the Russians.