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Icelandic stock exchange reopens

Business Materials 14 October 2008 16:59 (UTC +04:00)

Trading has resumed on the Icelandic stock exchange for the first time since its suspension last Thursday.

The main share index immediately fell 76%, but officials said this was a statistical anomaly caused by trading remaining suspended in financial firms, reported BBC.

When this factor is pulled out, the index actually rose slightly.

Iceland is still coming to terms with the near-collapse of its banking system. Its three largest banks had to be nationalised last week.

The difficulties in the Icelandic banking sector have had a major impact on other European countries, as Iceland's attractive interest rates have attracted a great many customers from overseas.

UK councils and other public bodies have about £1bn invested in Iceland, and hundreds of thousands of UK savers have also been affected.

The UK government is continuing to work with its Icelandic counterpart to ensure all UK depositors get their money back as swiftly as possible.

The UK Treasury says all UK savers' money is protected.

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