Iceland’s stock exchange nose-dived 76% on opening this morning after trading was suspended for three days.
The Icelandic government took the decision to cease trading on Thursday after the country’s financial sector collapsed.
Local authorities say the index actually rose when financial stocks were removed as their continued suspension was causing a statistical anomaly.
The country has been on the verge of bankruptcy after the government was forced to take over its three largest banks, which held debts many times the island’s GDP.
Today, Iceland sought a €4bn loan from Russia, and may become the first Western country to seek support from the IMF in more than 30 years.
The country is also facing a legal challenge from the UK government, which has been forced to guarantee lost savings deposits in the British subsidiaries of Icelandic banks.
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