Truemors
Country bancruptcy
Will other countries, receiving rescue money from IMF, like Hungary, end up with the same 20% for credit? No shop owner can operate to buy goods on 20% base. The booming construction industry In Iceland for homes will come to a complete stop.
Iceland's central bank has raised its key interest rate to 18% from 12% as the country battles against a complete financial collapse.
The increase comes less than two weeks after it cut rates from 15.5%.
News of the rise came as Iceland's prime minister said the country needed another $4bn (£2.6bn) in loans.
Iceland has been struggling to avoid collapse since it was forced to take over its three biggest banks, which had been hit by the credit crunch.
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