Iceland turns to Russia to avoid bankruptcy

The Icelandic government, fighting hard to prevent a collapse of its financial system, took control of the country's second biggest bank, Landsbanki, on Tuesday (7 October) and has had to run to Russia for cash to support its currency.

The country's central bank has also pegged the krona to the euro.

Reykvjavik said it had had no choice but to turn to Russia to secure a €4 billion loan lasting for up to four years - something necessary to strengthen its foreign exchange reserves a...