Posted: October 17, 2008, 5:30 PM by Kelly McParland
Full Comment, Neil Hrab
Iceland has suffered considerable ignominy as the country worst-hit by the financial meltdown. But it is not alone. Already there is some competition for the dubious honour of being crowned the "next Iceland." That is, the country most likely to face an Iceland-style financial disaster, brought on by the global credit crisis? Unlike "America's Next Top Model," this is one reality show nobody wants to win.
According to U.S.-based Forbes, it might be Hungary. Hungary is facing severe economic difficulties due to a heavy national debt.
On the other hand, the Financial Times says fears about Hungary are overblown. The FT quotes analysts who think Turkey (among others) has a better shot at becoming the next Iceland, because it may buckle under the weight of too external borrowing.
The UK-based Independent cannot make up its mind on which country will become the next Iceland. It says that both Switzerland and Ukraine are facing enough financial trouble to qualify. The Swiss had to bail out one of their country's biggest banks this week, while the Ukrainians were offered an IMF aid package worth billions of dollars to help shore up their crumbling banking sector.
The Economist sees both Ukraine and Hungary as eligible for the non-coveted title of next Iceland.
London's Telegraph on October 8th warned people living Down Under that Australia was in danger of becoming the next Iceland, based on fears about the health of its banks. The Telegraph hasn't repeated the warning, however, so hopefully that means the Aussies are out of the running.
National Post
Neil Hrab is a former National Post editorial writer, who has also served as a communications advisor to the federal government.
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