WI: US bails out Iceland

In OTL, during the financial crisis, Iceland asked for a billion dollar + loan or so from the US, but were turned down. They later got a decent sum from the IMF, and possibly from Russia as well.

What if the US said yes? Would it have any knock on effects?
 

hipper

Banned
In OTL, during the financial crisis, Iceland asked for a billion dollar + loan or so from the US, but were turned down. They later got a decent sum from the IMF, and possibly from Russia as well.

What if the US said yes? Would it have any knock on effects?


Iceland would now be poorer and a lot of bankers rather richer.
 
Iceland would now be poorer and a lot of bankers rather richer.

They would have gotten their money from the US taxpayer not from banks. They wouldn't need US government help to get money from a bank, they can do that by themselves. The IMF also asks countries to pay interest so I doubt they would be any poorer than now, maybe slightly richer if the US lends them the money for a lower interest rate than the IMF.
 
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